Market Snapshot
briefing.com
| Dow | 31500.68 | +823.32 | (2.68%) | | Nasdaq | 11607.61 | +375.43 | (3.34%) | | SP 500 | 3911.74 | +116.01 | (3.06%) | | 10-yr Note | -12/32 | 3.125 |
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| | NYSE | Adv 2479 | Dec 554 | Vol 3.19 bln | | Nasdaq | Adv 2440 | Dec 1471 | Vol 9.39 bln |
Industry Watch
| Strong: Communication Services, Information Technology, Consumer Discretionary, Industrials, Materials |
| | Weak: -- |
Moving the Market
-- Rebound effort to break three-week losing streak
--Broad-based buying interest
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Closing Market Summary
24-Jun-22 16:30 ET
Dow +823.32 at 31500.68, Nasdaq +375.43 at 11607.61, S&P +116.01 at 3911.74
[BRIEFING.COM] The stock market was able to hold onto its gains to break a three-week losing streak for each of the major indices. The market opened on a high note and quickly moved sharply higher before trading in narrow range for the rest of the session. The S&P 500 (+3.1%) finished the week just above the 3,900 level. The Dow Jones Industrial Average gained more than 800 points, closing up 2.7%. The Nasdaq Composite was the best performer of the day gaining 3.3%.
Economic data released today contributed to the positive sentiment in the market as New Home Sales beat May expectations while the final reading of the University of Michigan Consumer Sentiment survey for June dipped to a fresh record low, but also showed that five-year inflation expectations decreased to 3.1% from 3.3%.
The buying interest today was broad-based as evidenced by the Vanguard Mega Cap Growth ETF (MGK) closing up by a similar percentage as the Invesco S&P 500 Equal Weight ETF (RSP), up 3.7% and 3.3%, respectively.
In addition, the Russell 3000 Value Index closed up 2.7% compared to the Russell 3000 Growth Index, which was up 3.6%.
All 11 S&P 500 sectors closed in the green with gains ranging from 1.5% (energy) to 4.0% (materials).
Transport stocks contributed to the outperformance in the industrials sector (+3.5%) with FedEx (FDX 243.24, +16.26, +7.2%) rallying past its 200-day moving average (230.50) to a level not seen since early February after the company's above-consensus guidance for FY23 overshadowed a bottom-line miss. Air carriers also outperformed today with American Airlines (AAL 13.90, +0.92, +7.1%) closing atop the Dow Jones Transportation Average (+3.9%).
The energy sector continued this week's underperformance, but still gained a solid 1.5%, narrowing this week's loss to 1.6%. The sector was boosted by crude oil, which climbed 3.3% to $107.65/bbl.
Treasuries finished a solid week on a lower note with the 10-yr yield rising six basis points to 3.13% while the 2-yr yield rose five basis points to 3.06%.
Reviewing today's data:
- New home sales increased 10.7% month-over-month in May to a seasonally adjusted annual rate of 696,000 units (Briefing.com consensus 595,000) from an upwardly revised 629,000 (from 591,000) in April. On a year-over-year basis, new home sales were down 5.9%.
- The key takeaway from the report is that new home sales are counted when a contract is signed. The big gain in May coincided with some slippage in mortgage rates during the month, which likely spurred a rush of buying interest in anticipation of mortgage rates moving up again and pressuring affordability. Tellingly, sales in the high-priced West region were robust, as were sales in the South (the largest region for new home sales).
- The final University of Michigan Index of Consumer Sentiment for June dropped to 50.0 (Briefing.com consensus 50.2) from the preliminary reading of 50.2. The final reading for May was 58.4. The June reading compares to 85.5 in the same period a year ago and is the lowest reading ever on records dating back to 1978.
- The key takeaway from the report is the understanding that the weakening in consumer sentiment was broad-based across income, age, education, geographic region, and political affiliation, due in large part to inflation concerns.
Monday's economic data will be limited to the 8:30 ET release of May Durable Orders (Briefing.com consensus 0.1%; prior 0.4%) and Durable Orders ex-transportation (Briefing.com consensus 0.4%; prior 0.3%), followed by May Pending Home Sales (Briefing.com consensus -3.5%; prior -3.9%) at 10:00 ET.
- Dow Jones Industrial Average: -13.3% YTD
- S&P 500: -17.9% YTD
- S&P 400: -17.9% YTD
- Russell 2000: -21.4% YTD
- Nasdaq Composite: -25.8% YTD
Treasury yields and energy futures settle mostly up
24-Jun-22 15:30 ET
Dow +721.70 at 31399.06, Nasdaq +307.98 at 11540.16, S&P +99.86 at 3895.59
[BRIEFING.COM] The major indices are sitting near session highs. The Nasdaq Composite (+2.7%) has a slight performance edge over the other indices at this point.
The energy futures settled the session on a mixed note. WTI crude oil futures rose 3.3% to $107.65/bbl. Natural gas futures fell 0.6% to $6.22/mmbtu. Unleaded gasoline futures rose 3.3% to $3.78/gal.
Separately, Treasury yields settled near their highs of the day. The 10-yr note yield was up six basis points to 3.13%. The 2-yr note yield was up five basis points to 3.06%.
Mega caps no longer in the lead
24-Jun-22 15:00 ET
Dow +700.20 at 31377.56, Nasdaq +302.67 at 11534.85, S&P +97.35 at 3893.08
[BRIEFING.COM] The three main indices haven't made big moves in either direction recently. The S&P 500 (2.5%) continues to trade near its session high.
As the day progressed, the performance of the mega caps became less important as a directional driver. The Vanguard Mega Cap Growth ETF (MGK) is up by a similar percentage as the Invesco S&P 500 Equal Weight ETF (RSP), up 2.9% and 2.8%, respectively.
The buying interest is broad-based as evidenced by the value and growth stocks exhibiting similar gains. The Russell 3000 Value Index is up 2.8% compared to the Russell 3000 Growth Index, which is up 2.4%.
S&P 500 holds firm, travel/leisure names outperform on Friday
24-Jun-22 14:30 ET
Dow +635.98 at 31313.34, Nasdaq +278.30 at 11510.48, S&P +90.37 at 3886.10
[BRIEFING.COM] The S&P 500 (+2.38%) has continued to trade sideways in the last half hour, jockeying for position with the Nasdaq Composite (+2.48%) atop the major averages.
S&P 500 constituents Royal Caribbean (RCL 41.45, +5.38, +14.92%), Expedia (EXPE 101.72, +7.70, +8.19%), and Ball Corp (BALL 69.99, +4.27, +6.50%) dot the top of the index. Travel names -- like RCL and EXPE -- enjoy decent gains today, owing in part to the broader market rally, and despite unimpressive results from Carnival (CCL 10.72, +1.07, +11.09%) this morning, while BALL rallies alongside other materials names.
Meanwhile, solar components firm SolarEdge Technologies (SEDG 283.66, -7.87, -2.70%) is today's worst performing component.
Gold slightly trims weekly losses on Friday
24-Jun-22 14:00 ET
Dow +646.31 at 31323.67, Nasdaq +259.24 at 11491.42, S&P +88.78 at 3884.51
[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (+2.31%) sits narrowly in second place.
Gold futures settled less than $1 higher (flat) to $1,830.30/oz, ending narrowly higher amid a modestly weaker session from the greenback.
Meanwhile, the U.S. Dollar Index slips about -0.2% to $104.25.
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