Market Snapshot
briefing.com
| Dow | 34869.37 | +71.37 | (0.21%) | | Nasdaq | 14969.97 | -77.73 | (-0.52%) | | SP 500 | 4443.11 | -12.37 | (-0.28%) | | 10-yr Note | -25/32 | 1.484 |
|
| | NYSE | Adv 1911 | Dec 1348 | Vol 898.1 mln | | Nasdaq | Adv 2654 | Dec 1669 | Vol 4.6 bln |
Industry Watch
| Strong: Energy, Financials, Materials, Industrials |
| | Weak: Information Technology, Health Care, Real Estate, Utilities |
Moving the Market
-- Energy market gains steam amid reports of energy crunch in China and fuel shortages in the UK
-- Valuation-oriented weakness in the mega-caps
-- 10-yr yield hits 1.51%
|
Stocks close mixed, growth stocks lag while cyclicals rise
27-Sep-21 16:20 ET
Dow +71.37 at 34869.37, Nasdaq -77.73 at 14969.97, S&P -12.37 at 4443.11
[BRIEFING.COM] The S&P 500 decreased 0.3% on Monday in a session that featured positive momentum in long-term interest rates and energy prices, as well as influential weakness in the growth stocks.
The Nasdaq Composite, having more exposure to growth stocks, declined 0.5%, although it was down as much as 1.2% in early action. The Dow Jones Industrial Average gained 0.2% while the Russell 2000 outperformed with a 1.5% gain.
Prior to the open, the 10-yr yield hit 1.51% after it flirted with 1.30% last week. This speedy ascent was blamed for the early weakness in the growth stocks, and in effect the Nasdaq, due to their high valuations. The 10-yr yield quickly leveled off, though, and settled at 1.48%, or two basis points above Friday's settlement.
Growth stocks came off their lows as yields leveled off, and some buyers stepped into the market as the S&P 500 found support at its 50-day moving average (4442), which it managed to close above. The S&P 500 information technology sector still declined 1.0%, though.
The health care (-1.4%), real estate (-1.7%), and utilities (-1.2%) sectors underperformed with losses over 1.0%. On the upside, the cyclical energy (+3.4%), financials (+1.3%), materials (+0.8%), consumer discretionary (+0.4%), and industrials (+0.1%) sectors were the only sectors that closed higher.
Bank stocks benefited from the higher interest-rate environment while energy stocks rallied with the upwards momentum in WTI crude futures ($75.39/bbl, +1.39, +1.9%) and natural gas futures ($5.71/MMBtu, +0.51, +9.8%). The SPDR S&P Bank ETF (KBE 53.65, +1.81, +3.5%) rose 3.5%.
Energy prices were supported by reports of fuel shortages in the UK and an energy crunch in China amid supply constraints and rising demand. On a related note, some technology suppliers in China were forced to halt production this week in order to comply with a policy from Beijing aimed at preserving energy.
Separately, Boston Fed President Rosengren announced he will retire this Thursday, up from June 2022, due to health issues. CNBC reported right after the close that Dallas Fed President Kaplan announced he will now retire Oct. 8, citing the distractions his trading disclosures have created for the Fed. Mr. Rosengren was supposed to be an FOMC voter in 2022 while Mr. Kaplan had a vote in 2023.
The 2-yr yield increased one basis point to 0.28%. The U.S. Dollar Index increased 0.1% to 93.40.
Reviewing Monday's economic data:
- The August Durable Goods Orders report was mixed. Total durable goods orders up 1.8% (Briefing.com consensus +0.6%) following an upwardly revised 0.5% increase (from -0.1%) in July. Excluding transportation, orders were up 0.2% (Briefing.com consensus +0.6%) after an upwardly revised 0.8% increase (from 0.7%) in July. On a year-over-year basis, durable goods orders were up 24.7%, while orders, excluding transportation, were up 17.7%.
- The key takeaway from the report is that business spending remained on a positive track, evidenced by the 0.5% increase in nondefense capital goods orders excluding aircraft.
Looking ahead, investors will receive the Conference Board's Consumer Confidence Index for September; Advanced Intl Trade in Goods, Retail Inventories, and Wholesale Inventories for August; the FHFA Housing Price Index for July; and the S&P Case-Shiller Home Price Index for July on Tuesday.
- S&P 500 +18.3% YTD
- Nasdaq Composite +16.2% YTD
- Russell 2000 +15.5% YTD
- Dow Jones Industrial Average +13.9% YTD
Crude futures settle above $75 per barrel
27-Sep-21 15:30 ET
Dow +102.76 at 34900.76, Nasdaq -57.42 at 14990.28, S&P -6.15 at 4449.33
[BRIEFING.COM] The S&P 500 is down 0.1% after being down 0.4% intraday.
One last look at the S&P 500 sectors shows energy (+3.6%) racing ahead with a 3.6% gain, followed by the financials sector with a 1.4% gain. On the downside, the health care (-1.3%) and real estate (-1.2%) sectors are down more than 1.0%.
WTI crude futures settled higher by 1.9%, or $1.39, to $75.39/bbl amid reports of fuel shortages in the UK and an energy crunch in China. |
