Market Snapshot
briefing.com
| Dow | 35609.34 | +152.03 | (0.43%) | | Nasdaq | 15121.67 | -7.41 | (-0.05%) | | SP 500 | 4536.19 | +16.56 | (0.37%) | | 10-yr Note | 0/32 | 1.638 |
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| | NYSE | Adv 2189 | Dec 1016 | Vol 738.1 mln | | Nasdaq | Adv 2568 | Dec 1862 | Vol 4.1 bln |
Industry Watch
| Strong: Health Care, Utilities, Real Estate |
| | Weak: Information Technology, Communication Services |
Moving the Market
-- Dow hits all-time high
-- Earnings reports remain mostly better than expected
-- Strength in the value stocks, while the mega-caps consolidate
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S&P 500 and Dow close just below record highs
20-Oct-21 16:20 ET
Dow +152.03 at 35609.34, Nasdaq -7.41 at 15121.67, S&P +16.56 at 4536.19
[BRIEFING.COM] The S&P 500 (+0.5%) and Dow Jones Industrial Average (+0.4%) closed just below record highs on Wednesday, with the benchmark index rising for the sixth straight day and the Dow setting an intraday record high. The Nasdaq Composite (-0.1%) declined modestly, while the Russell 2000 rose 0.6%.
Value stocks saw increased buying interest following better-than-expected earnings reports from the likes of Verizon (VZ 53.61, +1.26, +2.4%), Abbott Labs (ABT 123.31, +3.97, +3.3%), Anthem (ANTM 424.05, +30.30, +7.7%), and United Airlines (UAL 45.95, -0.27, -0.6%). UAL shares closed lower, though.
The Russell 1000 Value Index advanced 1.0% with a counter-cyclical bias, which was evident in the leadership positions from the S&P 500 health care (+1.5%), utilities (+1.6%), and real estate (+1.6%) sectors.
Conversely, the heavily-weighted information technology (-0.3%), consumer discretionary (-0.2%), and communication services (-0.2%) sectors were the only sectors that closed lower, largely due to relative weakness in the mega-cap growth stocks. The Vanguard Mega Cap Growth ETF (MGK 247.26, -0.63) fell 0.3%.
The underperformance of the mega-caps was a byproduct of some consolidation activity and relatively disappointing Q4 guidance from Netflix (NFLX 625.14, -13.86, -2.2%) and Dutch semiconductor company ASML (ASML 767.70, -33.26, -4.2%). Note, the MGK ETF entered the session up 6.8% since Oct. 4.
PayPal (PYPL 258.36, -13.34, -4.9%) was another heavily-weighted laggard following reports that the company is in talks to acquire Pinterest (PINS 62.68, +7.10, +12.8%) for $70 per share. PayPal shares fell 5%. Pinterest shares rose 13%.
Separately, the Fed's Beige Book for October harped on supply chain disruptions, labor shortages, and higher input costs affecting economic growth. On a related note, Brinker Intl. (EAT 44.21, -4.74, -9.7%) was one of the latest companies to blame higher input costs for its downside guidance.
The Treasury market was relatively quiet amid a scarcity of economic data. The 2-yr yield decreased one basis point to 0.38%, and the 10-yr yield was unchanged at 1.64%. The U.S. Dollar Index decreased 0.1% to 93.60. WTI crude futures rose 1.5%, or $1.24, to $84.25/bbl amid an unexpected draw in weekly crude inventories (431,000).
Reviewing Wednesday's economic data:
- The weekly MBA Mortgage Applications Index fell 6.3% following a 0.2% increase in the prior week.
- Weekly crude oil inventories decreased by 431,000 barrels after increasing by 6.09 mln barrels during the previous week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for September, the Philadelphia Fed Index for October, and the Conference Board's Leading Economic Index for September on Thursday.
- S&P 500 +20.8% YTD
- Nasdaq Composite +17.3% YTD
- Dow Jones Industrial Average +16.4% YTD
- Russell 2000 +16.0% YTD
Crude futures rise amid weekly inventory draw
20-Oct-21 15:30 ET
Dow +141.70 at 35599.01, Nasdaq -10.50 at 15118.58, S&P +15.20 at 4534.83
[BRIEFING.COM] The S&P 500 continues to trade higher by 0.4% amid strength in the value/counter-cyclical stocks.
One last look at the sectors shows health care (+1.5%), utilities (+1.5%), and real estate (+1.2%) leading today's advance with gains over 1.0%. Conversely, the information technology (-0.3%), consumer discretionary (-0.2%), and communication services (-0.2%) sectors trade lower amid relative weakness in the mega-caps.
WTI crude futures settled higher by 1.5%, or $1.24, to $84.25/bbl amid an unexpected draw in weekly crude inventories (431,000). |
