Market Snapshot
briefing.com
| Dow | 36398.08 | -90.55 | (-0.25%) | | Nasdaq | 15741.55 | -24.65 | (-0.16%) | | SP 500 | 4778.73 | -14.33 | (-0.30%) | | 10-yr Note | +4/32 | 1.511 |
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| | NYSE | Adv 1843 | Dec 1444 | Vol 638.3 mln | | Nasdaq | Adv 2750 | Dec 1878 | Vol 3.7 bln |
Industry Watch
| Strong: Financials, Energy, Health Care |
| | Weak: Consumer Staples, Utilities |
Moving the Market
-- S&P 500 and Dow set record highs with modest gains
-- Positive bias persists amid seasonal factors, thin trading volume, and lack of market-moving news
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Market fumbles gains into the close
30-Dec-21 16:20 ET
Dow -90.55 at 36398.08, Nasdaq -24.65 at 15741.55, S&P -14.33 at 4778.73
[BRIEFING.COM] The S&P 500 (-0.3%) and Dow Jones Industrial Average (-0.3%) set intraday record highs early in Thursday's session, but they struggled to build on those gains and closed slower amid increased selling interest into the close. The Nasdaq Composite (-0.2%) and Russell 2000 (-0.02%) also fumbled gains and closed slightly lower.
The record-setting start was a carryover from yesterday amid seasonal factors, thin trading conditions, and a lack of specific catalysts. The gains were modest and lacked conviction, as the S&P 500 sectors wavered within 0.5% of their flat lines for most of the day.
It wasn't until the last 30 minutes of action that sellers gained control. Some participants, who are taking tomorrow off for New Year's Eve, might have taken profits while others would point to the view that the market was overbought and due for a breather.
Seven of the 11 S&P 500 sectors closed lower, including information technology (-0.7%) and energy (-0.7%) as laggards. The real estate (+0.4%), utilities (+0.3%), health care (+0.2%), and communication services (+0.1%) sectors closed higher.
Buying conviction might have also been restrained by ongoing headwinds attributed to the Omicron variant.
Specifically, Micron (MU 93.89, -2.28, -2.4%) warned of potential delays because of the lockdown in the Chinese city of Xi'an. The CDC upped its travel notice on cruise lines to Level 4, advising people to "avoid cruise travel, regardless of vaccination status." JetBlue (JLBU 14.24, -0.14, -1.0%) reportedly reduced its flight schedule next month in anticipation of staffing shortages.
On the bright side, vaccine news remained encouraging. Johnson & Johnson (JNJ 172.31, +0.76, +0.4%) said data demonstrated its booster shot was 85% effective against hospitalization in South Africa when the Omicron variant was dominant. The FDA is expected to expand eligibility for Pfizer's (PFE 58.40, +0.82, +1.4%) booster shot to 12- to 15-year-olds on Monday, according to The New York Times.
Separately, Biogen (BIIB 240.00, -18.31, -7.1%) dropped 7% after Samsung Group denied it was in talks to acquire the company.
U.S. Treasuries were on the defensive throughout the day, leaving yields lower. The 2-yr yield decreased one basis point to 0.74%, and the 10-yr yield decreased three basis points to 1.52%. The U.S. Dollar Index increased 0.1% to 95.98. WTI crude futures increased 0.4%, or $0.28, to $76.85/bbl.
Reviewing Thursday's economic data:
- Initial jobless claims for the week ending December 25 decreased by 8,000 to 198,000 (Briefing.com consensus 190,000) while continuing claims for the week ending December 18 decreased by 140,000 to 1.716 million.
- The key takeaway from the report is the recognition that the four-week moving average for initial claims (199,250) is the lowest it has been since October 25, 1969, which reflects the tightness of the labor market.
- The Chicago PMI increased to 63.1 in December (Briefing.com consensus 61.8) from 61.8 in November.
There is no economic data scheduled for Friday, which will be a full day of trading for the stock market.
- S&P 500 +27.2% YTD
- Nasdaq Composite +22.1% YTD
- Dow Jones Industrial Average +18.9% YTD
- Russell 2000 +13.9% YTD
WTI crude futures settle higher
30-Dec-21 15:30 ET
Dow +14.05 at 36502.68, Nasdaq +48.47 at 15814.67, S&P +2.77 at 4795.83
[BRIEFING.COM] The S&P 500 is up 0.1% and is trying to close at a record high.
One last look at the sectors shows real estate (+0.6%) and health care (+0.4%) outperforming with modest gains, while the energy sector (-0.6%) underperforms with a 0.6% gain.
WTI crude futures settled higher by 0.4%, or $0.28, to $76.85/bbl. In related news, Reuters reported that OPEC+ is aiming to keep its current production schedule at the Jan. 4 meeting.
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