Market Snapshot
briefing.com
| Dow | 34912.56 | +534.75 | (1.56%) | | Nasdaq | 14823.42 | +251.79 | (1.73%) | | SP 500 | 4438.26 | +74.46 | (1.71%) | | 10-yr Note | +2/32 | 1.515 |
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| | NYSE | Adv 2513 | Dec 753 | Vol 795.3 mln | | Nasdaq | Adv 2804 | Dec 1498 | Vol 4.2 bln |
Industry Watch
| Strong: Health Care, Information Technology, Materials |
| | Weak: Energy |
Moving the Market
-- Strong session amid positive earnings news and economic data
-- Better-than-feared PPI data for September, lower-than-expected weekly claims data
-- 10-yr yield dips
-- Retest of the S&P 500's 50-day moving average (4436)
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Stocks rally as market feeds off earnings, data, and lower rates
14-Oct-21 16:15 ET
Dow +534.75 at 34912.56, Nasdaq +251.79 at 14823.42, S&P +74.46 at 4438.26
[BRIEFING.COM] The S&P 500 rallied 1.7% on Thursday, bolstered by positive earnings news, relatively encouraging economic data, and a decline in long-term interest rates. The Nasdaq Composite (+1.7%) and Dow Jones Industrial Average (+1.6%) performed comparably to the benchmark index, while Russell 2000 increased 1.4%.
The advance was steady and broad-based: all 11 S&P 500 sectors closed higher between 1.0% (consumer discretionary) and 2.4% (materials), and the Invesco S&P 500 Equal Weight ETF (RSP 155.17, +2.62) gained 1.7%. Notably, the S&P 500 reclaimed its 50-day moving average (4436) on a closing basis.
Growth stocks particularly benefited from the 10-yr yield declining by three basis points to 1.52%, which was driven by a peak-inflation sentiment following the Producer Price Index (PPI) report for September. While the year-over-year rates for PPI remained notably high, core PPI, which excludes food and energy, increased just 0.2% m/m (Briefing.com consensus +0.5%).
Value stocks drew support from better-than-expected Q3 earnings reports and from the lowest level of weekly jobless claims since the start of the pandemic. Initial jobless claims decreased by 36,000 to 293,000 (Briefing.com consensus 332,000).
The high-profile earnings winners included UnitedHealth (UNH 420.36, +16.81, +4.2%), Bank of America (BAC 45.07, +1.93, +4.5%), Morgan Stanley (MS 101.01, +2.44, +2.5%), Walgreens Boots Alliance (WBA 50.77, +3.51, +7.4%), Citigroup (C 70.80, +0.54, +0.8%), and Taiwan Semi (TSM 112.56, +2.58, +2.4%).
Taiwan Semi also provided upside Q4 revenue guidance, which served as an additional boost for the Philadelphia Semiconductor Index (+3.1%). Wells Fargo (WFC 45.31, -0.74, -1.6%) and U.S. Bancorp (USB 60.08, -1.38, -2.3%), however, struggled with losses despite beating expectations.
Separately, an FDA advisory committee unanimously recommended Moderna's (MRNA 331.88, +10.38, +3.2%) booster shot for adults 65 years and older and other high-risk adults.
The 2-yr yield decreased two basis points to 0.35%. The U.S. Dollar Index decreased 0.1% to 93.99. WTI crude futures rose 1.0%, or $0.77, to $81.28/bbl despite a sizable build in weekly crude inventories (6.09 mln barrels).
Reviewing Thursday's economic data:
- The Producer Price Index for September was a bit softer than expected. The index for final demand increased 0.5% month-over-month (Briefing.com consensus +0.6%) and the index for final demand, less foods and energy, increased 0.2% (Briefing.com consensus +0.5%). On a year-over-year basis, the index for final demand was up 8.6%, versus 8.3% in August. That is the largest advance since the 12-month data were first calculated in November 2010.
- The key takeaway from the report is in the Treasury market's initial response, which is muted and indicative once again that market participants are sniffing peak inflation. The 10-yr note yield is down two basis points to 1.53% (which is where it was just prior to the release).
- The latest weekly initial claims report was the best since March 14, 2020. Initial claims for the week ending October 9 decreased by 36,000 to 293,000 (Briefing.com consensus 332,000). Continuing claims for the week ending October 2 decreased by 134,000 to 2.593 million, which was also the lowest since March 14, 2020.
- The key takeaway from the report is that the claims figures are moving in the manner and direction they should be moving given the recurring refrain of labor shortages and the recurring reports showing that there are more than ten million job openings.
Looking ahead to Friday, investors will receive Retail Sales for September, the Empire State Manufacturing Survey for October, Import and Export Prices for September, the preliminary University of Michigan Index of Consumer Sentiment for October, and Business Inventories for August.
- S&P 500 +18.2% YTD
- Russell 2000 +15.2% YTD
- Nasdaq Composite +15.0% YTD
- Dow Jones Industrial Average +14.1% YTD
Crude futures settle higher
14-Oct-21 15:30 ET
Dow +511.89 at 34889.70, Nasdaq +242.77 at 14814.40, S&P +71.41 at 4435.21
[BRIEFING.COM] The S&P 500 is up 1.6% and continues to wrestle with its 50-day moving average (4436).
One last look at the S&P 500 sectors shows broad-based gains, led by the materials (+2.3%) and information technology (+2.2%) sectors with gains over 2.0%. The consumer discretionary sector (+0.9%) is the only sector up less than 1.0%.
WTI crude futures settled higher by 1.0%, or $0.77, to $81.28/bbl. |
