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To: Return to Sender who wrote (85488)

8/15/2020 3:17:00 PM

From: Return to Sender

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Flat session to end the week
14-Aug-20 16:15 ET

Dow +34.30 at 27931.02, Nasdaq -23.20 at 11019.38, S&P -0.58 at 3372.85

briefing.com

[BRIEFING.COM] The S&P 500 finished flat on Friday and traded near its flat line all session. The Dow Jones Industrial Average increased 0.1%, while the Nasdaq Composite (-0.2%) and Russell 2000 (-0.1%) closed marginally lower.

Within the S&P 500, no sector gained or lost more than 1.0%, but the cyclical groups did see modest gains following a batch of mostly positive economic data. The energy (+0.9%), industrials (+0.4%), financials (+0.3%), and materials (+0.2%) sectors outperformed, while the utilities sector declined 0.9%.

Highlighting key economic reports, retail sales increased 1.2% in July (Briefing.com consensus 1.8%) and nonfarm labor productivity jumped 7.3% (Briefing.com consensus 3.5%) in the second quarter.

In the latest coronavirus relief news, President Trump said he was ready to send $105 billion to states for pandemic resources and "additional money" to states to pay government workers. Note, Democrats are looking for $915 billion in funding for state and local governments.

Separately, Reuters reported that Saturday's trade talks between U.S. and China have been delayed due to a scheduling conflict, but both sides are still expected to recommit to a deal. China reportedly increased purchases of U.S. oil shipments.

On the corporate front, McKesson (MCK 158.67, +6.48, +4.3%) partnered with the U.S. government for COVID-19 vaccine distribution, Applied Materials (AMAT 67.62, +2.55, +3.9%) provided positive quarterly results and upbeat guidance, and Tesla (TSLA 1650.71, +29.71, +1.8%) was upgraded to the equivalent of a Hold rating at BofA Securities and Morgan Stanley.

Most U.S. Treasuries finished slightly higher. The 2-yr yield declined three basis points to 0.13%, and the 10-yr yield declined one basis point to 0.71%. The U.S. Dollar Index declined 0.3% to 93.10. WTI crude futures declined 0.5%, or $0.21, to $42.05/bbl.

Reviewing Friday's big batch of economic data:

Retail sales increased 1.2% in July (Briefing.com consensus 1.8%) after increasing a revised 8.4% (from 7.3%) in June. Excluding autos, retail sales rose 1.9% (Briefing.com consensus 1.4%) after increasing a revised 8.3% (from 7.3%) in June.
- The key takeaway from the report is that while sales were shy of expectations in July, the upward revision to figures from June makes the report less disappointing on the whole.
Nonfarm business sector labor productivity jumped 7.3% in the second quarter (Briefing.com consensus 3.5%) after a revised 0.3% decrease (from -0.9%) in the first quarter. Unit labor costs increased 12.2% in the second quarter (Briefing.com consensus 5.5%) after increasing a revised 9.8% (from 5.1%) in the first quarter.
- The key takeaway from the report is that while productivity improved significantly in Q2, the overall level of activity was sharply lower due to coronavirus-related shutdowns and restrictions. If sustained, the jump in labor costs could lead to some cost-push inflation.
Total industrial production increased 3.0% in July (Briefing.com consensus 2.9%) following a revised 5.7% increase (from 5.4%) in June. The capacity utilization rate improved to 70.6% (Briefing.com consensus 70.0%) from a revised rate of 68.5% (from 68.6%) in June.
- The key takeaway from the report is that while total industrial production remains well below levels from a year ago, the production of motor vehicles and parts has largely recovered.
The preliminary University of Michigan Index of Consumer Sentiment for August ticked up to 72.8 (Briefing.com consensus 70.5) from the final reading of 72.5 for July.
- The key takeaway from the report is that there was little overall change from the preceding period. The University of Michigan provided a table showing consumer expectations by political affiliation, which showed a stark difference in expectations among those who identify as Republican (97.4) and Democrat (45.0). Expectations of respondents identifying as Independent were essentially in the middle (66.7).
Business inventories decreased 1.1% in June (Briefing.com consensus -1.3%) following an unrevised 2.3% decline in May.

Looking ahead, investors will receive the Empire State Manufacturing Survey for August, the NAHB Housing Market Index for August, and Net Long-Term TIC Flows on Monday.

Nasdaq Composite +22.8% YTD
S&P 500 +4.4% YTD
Dow Jones Industrial Average -2.1% YTD
Russell 2000 -5.4% YTD

Market Snapshot

Dow	27931.02	+34.30	(0.12%)
Nasdaq	11019.38	-23.20	(-0.21%)
SP 500	3372.85	-0.58	(-0.02%)
10-yr Note	+1/32	0.712

NYSE	Adv 1464	Dec 1446	Vol 715.6 mln
Nasdaq	Adv 1539	Dec 1732	Vol 3.4 bln

Industry Watch

Strong: Industrials, Energy, Financials, Materials

Weak: Utilities

Moving the Market

-- Flat session to end the week

-- Relatively positive economic data, cyclical sectors outperformed

-- Lighter-than-usual trading volume

WTI crude settles lower
14-Aug-20 15:25 ET

Dow -56.99 at 27839.73, Nasdaq -59.07 at 10983.51, S&P -9.53 at 3363.90
[BRIEFING.COM] The S&P 500 has slipped to session lows with a 0.3% decline. The Russell 2000 is down 0.2%.

One last look at the S&P 500 sectors shows the utilities sector down 1.0%, but interestingly it is the only sector up or down at least 1.0%. Evidently, there is little conviction among buyers or sellers today outside the utilities space.

WTI crude futures settled lower by 0.5%, or $0.21, to $42.05/bbl.