S&P 500 closes lower in headline-heavy day
26-Sep-19 16:25 ET
Dow -79.59 at 26891.12, Nasdaq -46.72 at 8030.66, S&P -7.25 at 2977.66
briefing.com
[BRIEFING.COM] The S&P 500 lost 0.2% on Thursday in an indecisive session. Economic data continued to depict a decent U.S. economy, but a headline-heavy day helped keep some buyers sidelined. The Dow Jones Industrial Average (-0.3%) also declined modestly, while the Nasdaq Composite (-0.6%) and Russell 2000 (-1.1%) fell behind.
In terms of data, weekly jobless claims, which are a leading indicator, remained at historically low levels (213,000); pending home sales rebounded 1.6% in August (Briefing.com consensus 0.6%); and the third estimate for Q2 GDP remained unchanged, as expected.
Less straightforward, investors had to parse the release of the whistleblower complaint against President Trump and mixed reports on whether the U.S. would extend waivers for companies to supply Huawei. Upbeat news included reports that General Motors (GM 37.61, +0.50, +1.4%) and the UAW were closing in on a deal and Interactive Brokers (IBKR 51.51, -0.22, -0.4%) announcing it will launch a commission-free, unlimited trade platform.
Fittingly, the headlines were mixed, and stocks finished mixed: six S&P 500 sectors finished lower, and five sectors finished higher. The energy sector (-1.3%) stood out despite oil prices ($56.41/bbl, -$0.15, -0.3%) recovering most of their intraday losses, while relative strength was found in the defensive-oriented real estate (+0.9%), consumer staples (+0.5%), and utilities (+0.5%) sectors.
The communication services sector (-0.8%) was another laggard, largely due to weakness in Facebook (FB 180.11, -2.69, -1.5%) after reports indicated the Department of Justice will open an antitrust case into the company. Amazon (AMZN 1739.84, -28.49, -1.6%), which is a component of the consumer discretionary sector (-0.6%), also showed relative weakness.
Peloton (PTON 25.76, -3.24, -11.2%) had a disappointing first day of trading. Shares opened at $27.00 after pricing in at $29.00 and gradually retreated throughout the day. On the other hand, investors (or speculators) jumped back into Beyond Meat (BYND 154.34, +16.02, +11.6%) on news that it teamed up with McDonald's (MCD 212.60, -0.03, unch) for a 12-week test at 28 locations in Canada.
U.S. Treasuries finished higher, pushing yields lower in a curve-flattening trade. The 2-yr yield declined two basis points to 1.65%, and the 10-yr yield declined five basis points to 1.69%. The U.S. Dollar Index held firm, increasing 0.2% to 99.21.
Reviewing Thursday's batch of economic data:
- Initial claims for the week ending September 21 increased by 3,000 to 213,000 (Briefing.com consensus 212,000). Continuing claims for the week ending September 14 decreased by 15,000 to 1.650 million.
- The key takeaway from the report is that there are no new, key takeaways. Initial claims remain near historic lows, which is indicative of a tight labor market.
- The third estimate for Q2 GDP showed no change from the second estimate. GDP increased at an annualized rate of 2.0%, as expected, and the GDP Price Deflator held at 2.4%, as expected. There were some moving parts beneath those headline figures, but the moves basically canceled each other out.
- The key takeaway from the report is that it is old news and doesn't upset prior economic beliefs pertaining to the second quarter.
- Pending Home Sales increased 1.6% in August (Briefing.com consensus +0.9%). Today's reading follows an unrevised 2.5% decline in July.
- The advance report for international trade in goods showed a slight widening in the deficit to -$72.8 billion in August from -$72.5 billion. Advance retail inventories were flat and advance wholesale inventories were up 0.4%.
Looking ahead, investors will receive the following reports on Friday: Personal Income and Spending for August, the PCE Price Index for August, Durable Goods Orders for August, and the final reading for the University of Michigan Index of Consumer Sentiment for September.
- Nasdaq Composite +21.0% YTD
- S&P 500 +18.8% YTD
- Dow Jones Industrial Average +15.3% YTD
- Russell 2000 +13.7% YTD
Market Snapshot
| Dow | 26891.12 | -79.59 | (-0.30%) | | Nasdaq | 8030.66 | -46.72 | (-0.58%) | | SP 500 | 2977.66 | -7.25 | (-0.24%) | | 10-yr Note | +4/32 | 1.696 |
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| | NYSE | Adv 1241 | Dec 1640 | Vol 755.4 mln | | Nasdaq | Adv 991 | Dec 2077 | Vol 1.9 bln |
Industry Watch
| Strong: Real Estate, Consumer Staples, Utilities |
| | Weak: Communication Services, Energy |
Moving the Market
-- U.S. stocks close mostly lower in indecisive session; headline-heavy day
-- Economic data continued to depict a decent picture of the U.S. economy
-- Defensive-oriented sectors outperformed, Treasuries ticked higher
-- Whistleblower complaint against President Trump released
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WTI crude settles lower but well off session lows
26-Sep-19 15:30 ET
Dow -11.63 at 26959.08, Nasdaq -31.58 at 8045.80, S&P -0.74 at 2984.17
[BRIEFING.COM] The S&P 500 has returned to just below its unchanged mark. There has been no specific news catalyst to account for this afternoon's rebound, but the market has shown a propensity to buy into weakness this year.
One last look at the S&P 500 sectors shows energy (-1.1%) and communication services (-0.7%) down the most, while the real estate (+1.0%), consumer staples (+0.7%), and utilities (+0.7%) sectors lead the comeback effort.
WTI crude settled down $0.15 (-0.3%) to $56.41/bbl, recouping most of its intraday losses. |
