Large-cap indices close flat to preserve weekly gains
06-Nov-20 16:15 ET
Dow -66.78 at 28323.34, Nasdaq +4.30 at 11895.16, S&P -1.01 at 3509.58
briefing.com
[BRIEFING.COM] The S&P 500 (-0.03%) finished flat on Friday despite a better-than-expected October employment report, although it still ended the week higher by 7.3%. The Nasdaq Composite (+0.04%) and Dow Jones Industrial Average (-0.2%) also finished little changed in a lackluster session, while the Russell 2000 fell 1.0%.
Briefly, nonfarm payrolls increased by 638,000 (Briefing.com consensus 570,000) and the unemployment rate was 6.9% (Briefing.com consensus 7.7%), versus 7.9% in September. This was the sixth straight month of a labor market recovery, but it supported a view among some lawmakers, including Senate Majority Leader McConnell, for a smaller stimulus deal.
The S&P 500 energy sector dropped 2.1% amid weaker oil prices ($37.14/bbl, -$1.61, -4.2%), which was attributed to profit taking and the notion that a smaller slower economic recovery would hinder oil demand. No other sector gained or lost more than 1.0%.
The financials sector (-0.8%) also showed relative weakness, while the defensive-oriented consumer staples (+0.4%), information technology (+0.3%), and health care (+0.2%) sectors posted modest gains.
Beneath the index and sector levels was a more interesting story with lots of earnings movers. To name a few, T-Mobile US (TMUS 123.56, +6.30, +5.4%), CVS Health (CVS 64.95, +3.54, +5.8%), Uber (UBER 44.87, +2.91, +6.9%), and Square (SQ 198.08, +22.85, +13.0%) stood out with impressive gains, while Electronic Arts (EA 119.19, -9.14, -7.1%) disappointed.
Separately, the presidential election remained undecided but former Vice President Biden continued to lead President Trump 253-214 in the delegate count, according to most news outlets. A winner could be announced this weekend.
In the Treasury market, longer-dated maturities succumbed to renewed selling interest following the release of the employment report. The 2-yr yield increased one basis point to 0.16%, and the 10-yr yield increased four basis points to 0.82%. The U.S. Dollar Index decreased 0.3% to 92.26.
Reviewing Friday's economic data, which featured the Employment Situation Report:
- Nonfarm payrolls increased by 638,000 (Briefing.com consensus 570,000); the unemployment rate was 6.9% (Briefing.com consensus 7.7%), versus 7.9% in September; average hourly earnings increased 0.1% (Briefing.com consensus 0.2%) versus a downwardly revised 0.0% (from 0.1%) in September.
- The key takeaway from the report perhaps is that, because it was better than expected, Congress could potentially see a rationale for cutting down the size of the ~$2 trillion fiscal stimulus package that was discussed before the election.
- Wholesale inventories increased 0.4% m/m in September (Briefing.com consensus -0.1%) following a 0.5% increase in August.
Investors will not receive any notable economic data on Monday.
- Nasdaq Composite +32.6% YTD
- S&P 500 +8.6% YTD
- Dow Jones Industrial Average -0.8% YTD
- Russell 2000 -1.5% YTD
Market Snapshot
| Dow | 28323.34 | -66.78 | (-0.24%) | | Nasdaq | 11895.16 | +4.30 | (0.04%) | | SP 500 | 3509.58 | -1.01 | (-0.03%) | | 10-yr Note | -5/32 | 0.821 |
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| | NYSE | Adv 1147 | Dec 1864 | Vol 926.3 mln | | Nasdaq | Adv 1337 | Dec 2126 | Vol 4.1 bln |
Industry Watch
| Strong: Health Care Consumer Staples, Utilities |
| | Weak: Energy, Consumer Discretionary, Industrials |
Moving the Market
-- Lackluster index performance after four-day rally
-- October employment report was better than expected
-- Investors buy early dip
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WTI crude futures fall 4%
06-Nov-20 15:30 ET
Dow -78.56 at 28311.56, Nasdaq -13.54 at 11877.32, S&P -2.57 at 3508.02
[BRIEFING.COM] The S&P 500 continues to trade below its flat line with a 0.1% decline. For the week, it's still up 7.2%.
One last look at the S&P 500 sectors shows energy (-2.1%) down more than 2.0% but no other sector is down or up more than 1.0%. The financials sector is down 0.9% while the consumer staples sector outperforms with a 0.4% gain.
WTI crude futures settled sharply lower by 4.2%, or $1.61, to $37.14/bbl amid lingering concerns about a slower economic recovery. |
