Stock market closes little changed after setting record highs
14-Jan-20 16:15 ET
Dow +32.62 at 28939.58, Nasdaq -22.60 at 9251.35, S&P -4.98 at 3283.15
briefing.com
[BRIEFING.COM] Each of the large-cap indices set new intraday highs on Tuesday, but only the Dow Jones Industrial Average (+0.1%) managed to finish higher. The S&P 500 and Nasdaq Composite both declined 0.2%, while the small-cap Russell 2000 rose 0.4%.
The day began with JPMorgan Chase (JPM 138.80, +1.60, +1.2%), Citigroup (C 81.91, +1.26, +1.6%), and Delta Air Lines (DAL 61.45, +1.96, +3.3%) providing investors with better-than-expected earnings results, while Wells Fargo (WFC 49.32, -2.79, -5.4%) missed top and bottom-line estimates due to higher expenses.
The results contributed to noticeable price changes in the stocks, but the price action in the broader market was relatively tight-ranged amid some buyer exhaustion. At its high, the S&P 500 was up just 0.2%, and it was down just 0.3% after Bloomberg reported that existing tariffs on Chinese imports will remain for at least ten months.
From a sector standpoint, the S&P 500 information technology (-0.6%) and real estate (-0.5%) sectors were today's laggards, while the health care (+0.5%) and utilities (+0.3%) sectors finished with modest gains. Apple (AAPL 312.68, -4.28, -1.4%) weighed on the tech sector after shares were downgraded to Underweight from Neutral at Atlantic Equities.
Back to the trade news, selling was modest, as there was never any indication the U.S. would remove tariffs with the signing of a Phase One deal. The report may have been a good excuse to sell a market that is overbought on a short-term basis, but buyers remained a resilient bunch.
In other corporate news, Boston Scientific (BSX 42.66, -2.81, -6.2%) issued downside revenue guidance. A recent study indicated that Walt Disney's (DIS 145.20, +1.32, +0.9%) streaming app may have been downloaded more than 40 million times. Visa (V 196.05, +0.72, +0.4%) agreed to acquire Plaid for $5.3 billion.
U.S. Treasuries finished the quiet session on a mostly higher note. The 2-yr yield was unchanged at 1.58%, and the 10-yr yield declined three basis points to 1.82%. The U.S. Dollar Index finished flat at 97.38. WTI crude increased 0.3%, or $0.18, to $58.30/bbl.
Reviewing Tuesday's economic data, which included the Consumer Price Index for December and the Small Business Optimism Index for December:
- The Consumer Price Index for December brought good news in relative terms, as there weren't any overshoots compared to expectations. Total CPI was up 0.2% m/m, as expected, while core CPI, which excludes food and energy, was up a softer-than-expected 0.1% (Briefing.com consensus +0.2%).
- The key takeaway from the report is that it won't cause any immediate re-think of the Fed's policy position. Core CPI has been up 2.3% yr/yr for three straight months, so the inflation rate isn't running away from the Fed, which seems to have adopted a willingness to let inflation run above its longer-run goal for a bit before moving on rates; moreover, the CPI data takes a backseat to the PCE price data as the Fed's preferred inflation gauge, and the latest report showed core-PCE inflation up just 1.6% yr/yr.
- The NFIB Small Business Optimism Index declined to 102.7 from 104.7.
Looking ahead, investors will receive the Producer Price Index for December, the Empire State Manufacturing Survey for January, the Fed's Beige Book, and the weekly MBA Mortgage Applications Index on Wednesday.
- Nasdaq Composite +3.1% YTD
- S&P 500 +1.6% YTD
- Dow Jones Industrial Average +1.4% YTD
- Russell 2000 +0.4% YTD
Market Snapshot
| Dow | 28939.58 | +32.62 | (0.11%) | | Nasdaq | 9251.35 | -22.60 | (-0.24%) | | SP 500 | 3283.15 | -4.98 | (-0.15%) | | 10-yr Note | +3/32 | 1.815 |
|
| | NYSE | Adv 1655 | Dec 1227 | Vol 915.9 mln | | Nasdaq | Adv 1609 | Dec 1578 | Vol 2.5 bln |
Industry Watch
| Strong: Health Care, Utilities |
| | Weak: Information Technology, Real Estate |
Moving the Market
-- Stock market sets new intraday highs, but gives back gains during the afternoon
-- JPMorgan Chase (JPM), Citigroup (C), and Delta Air Lines (DAL) gain on positive earnings results
-- Wells Fargo (WFC) disappoints
-- The U.S. will reportedly keep existing tariffs on Chinese imports for at least ten months
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WTI crude posts modest gain
14-Jan-20 15:25 ET
Dow +14.84 at 28921.80, Nasdaq -21.33 at 9252.62, S&P -6.55 at 3281.58
[BRIEFING.COM] The S&P 500 is down 0.2%, the Nasdaq is down 0.2%, and the Dow is up 0.1%. Any positive finish for the major indices would denote a record close.
One last look at the S&P 500 sectors shows nine groups trading lower, with real estate (-0.8%) leading the decline. The industrials (+0.1%) and health care (+0.2%) sectors hold slim gains.
WTI crude settled up $0.18 (+0.3%) to $58.30/bbl.
FedEx climbs on reports it can resume shipping for Amazon |
