Market Snapshot
briefing.com
| Dow | 31029.31 | +82.32 | (0.27%) | | Nasdaq | 11177.88 | -3.65 | (-0.03%) | | SP 500 | 3818.83 | -2.72 | (-0.07%) | | 10-yr Note |
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| | NYSE | Adv 1087 | Dec 2005 | Vol 920 mln | | Nasdaq | Adv 1574 | Dec 2728 | Vol 5.5 bln |
Industry Watch
| Strong: Consumer Staples, Health Care, Information Technology, Communication Services |
| | Weak: Real Estate, Industrials, Materials, Energy, Financials |
Moving the Market
--Lingering concerns about rate hikes and growth prospects
-- Cleveland Fed Pres. Mester (FOMC voting member) said she supports a 75 basis point rate hike in July if economic conditions stay unchanged
-- Relative strength in mega caps
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Closing Summary
29-Jun-22 16:20 ET
Dow +82.32 at 31029.31, Nasdaq -3.65 at 11177.88, S&P -2.72 at 3818.83
[BRIEFING.COM] It was a choppy day for the stock market with the major indices sticking to a narrow range, though with volatile price action. The indices set early session lows before rolling along the rest of the day above those levels. There was more of a negative bias than what the major indices showed.
Rate hike and growth concerns weighed on trading mentality. There was little conviction from the buyers today as evidenced by the advance-decline line. Decliners led advancers by a roughly 2-to-1 margin at both the NYSE and Nasdaq.
Another factor that showed growth concerns were the mega caps which outperformed the broader market. The Vanguard Mega Cap Growth ETF (MGK) closed up 0.3% compared to the 0.6% loss in the Invesco S&P 500 Equal Weight ETF (RSP). The Russell 2000 and S&P Mid Cap 400 were down 1.2% and 0.8%, respectively.
Of the 11 S&P 500 sectors, six closed in the green. Some of the outperformers were counter-cyclical sectors, including health care (+0.9%), consumer staples (+0.5%), and utilities (+0.1%).
The cyclical sectors lagged today. The energy (-3.4%), real estate (-0.8%), materials (-0.7%), financials (-0.6%), and industrials (-0.6%) sectors all closed in the red, further fueling the growth concern narrative.
Rate hike concerns were fueled this morning by Cleveland Fed President Mester (FOMC voter) saying she would advocate for another 75 basis point rate hike in July if conditions remain the same. Fed Chair Powell for his part acknowledged at an ECB forum that the importance of fighting inflation is worth the risk of slowing economic activity too much, which was another way of saying that it will be challenging for the Fed to achieve a soft landing.
Treasury yields closed lower. The 10-yr note yield fell 11 basis points to 3.09% and the 2-yr note yield fell seven basis points to 3.07% in a curve-flattening trade.
Reviewing today's economic data:
- Q1 GDP - Third Estimate -1.6% (Briefing.com consensus -1.5%); Prior -1.5%; Q1 GDP Deflator - Third Estimate 8.2% (Briefing.com consensus 8.1%); Prior 8.1%
- The key takeaway from the report is that consumer spending wasn't as strong as previously reported. Personal consumption expenditures increased just 1.8% in the first quarter versus the second estimate, which showed growth of 3.1%.
- Weekly MBA Mortgage Applications Index 0.7%; Prior 4.2%
- EIA Crude Oil Inventories had a draw of 2.76 mln barrels (prior week showed a build of 1.96 mln barrels) and gasoline inventories had a build of 2.56 mln barrels (prior week showed a draw of 710K barrels)
Looking ahead to Thursday, the Personal Income (Briefing.com consensus 0.5%; prior 0.4%), Personal Spending (Briefing.com consensus 0.5%; prior 0.9%), PCE Price Index (Briefing.com consensus 0.7%; prior 0.2%), and the Core PCE Price Index (Briefing.com consensus 0.3%; prior 0.3%) for May will be released at 8:30 a.m. ET. The weekly initial jobless claims (Briefing.com consensus 234,000; prior 229,000) and continuing claims (prior 1.315 million) will also be released at 8:30 a.m. ET. The Chicago PMI (Briefing.com consensus 58.8; prior 60.3) for June will be released at 9:45 a.m. ET. The weekly EIA Natural Gas Inventories (prior +74 bcf) will be released at 10:30 a.m. ET.
- Dow Jones Industrial Average: -14.6% YTD
- S&P 500: -19.9% YTD
- S&P 400: -19.4% YTD
- Russell 2000: -23.4% YTD
- Nasdaq Composite: -28.6% YTD
Energy futures and Treasury yields settle lower
29-Jun-22 15:30 ET
Dow +128.23 at 31075.22, Nasdaq +11.16 at 11192.69, S&P +4.73 at 3826.28
[BRIEFING.COM] It's been more of the same for the three main indices.
Energy futures settled mostly lower ahead of tomorrow's OPEC meeting. WTI crude oil futures fell 1.9% to $109.88/bbl. Natural gas futures settled flat at $6.51/mmbtu. Unleaded gasoline futures fell 3.0% to $3.73/gal.
Treasury yields closed lower as well. The 10-yr note yield fell 11 basis points to 3.09%. The 2-yr note yield fell seven basis points to 3.07%.
Looking ahead to Thursday, the Personal Income (Briefing.com consensus 0.5%; prior 0.4%), Personal Spending (Briefing.com consensus 0.5%; prior 0.9%), PCE Price Index (Briefing.com consensus 0.7%; prior 0.2%), and the Core PCE Price Index (Briefing.com consensus 0.3%; prior 0.3%) for May will be released at 8:30 a.m. ET. The weekly initial jobless claims (Briefing.com consensus 234,000; prior 229,000) and continuing claims (prior 1.315 million) will also be released at 8:30 a.m. ET. The Chicago PMI (Briefing.com consensus 58.8; prior 60.3) for June will be released at 9:45 a.m. ET. The weekly EIA Natural Gas Inventories (prior +74 bcf) will be released at 10:30 a.m. ET.
Additionally, Walgreens Boots Alliance (WBA 40.94, -0.01, -0.1%) will report its earnings results before the open.
Small and mid caps underperform
29-Jun-22 15:00 ET
Dow +81.87 at 31028.86, Nasdaq -30.33 at 11151.20, S&P -5.23 at 3816.32
[BRIEFING.COM] The three main indices are keeping above session lows but steadily decline in recent action. The Dow Jones Industrial Average is the lone average trading in the green.
The S&P 500 consumer discretionary sector (-0.3%) has spent most of today in negative territory, although its weakness has been limited thanks to the support provided by Amazon.com (AMZN 108.63, +1.26, +1.2%). One notable laggard is Bath & Body Works (BBWI 26.40, -2.59, -9.0%) after being downgraded to Neutral from Overweight at JP Morgan.
The small and mid cap stocks are struggling more than the broader market today. The Russell 2000 is down 1.3% and the S&P 400 is down 0.9%.
The growth stocks have a performance edge over the value stocks today. The Russell 3000 Growth Index is up 0.3% while the Russell 3000 Value Index is down 0.4%.
Bath & Body Works slips on JPM downgrade
29-Jun-22 14:30 ET
Dow +168.79 at 31115.78, Nasdaq +3.30 at 11184.83, S&P +4.49 at 3826.04
[BRIEFING.COM] The major averages now show green across the board, having moved slightly higher in the last 30 minutes; the S&P 500 (+0.12%) is firmly in second place.
S&P 500 constituents Bath & Body Works (BBWI 26.54, -2.46, -8.48%), Digital Realty Trust (DLR 126.27, -8.29, -6.16%), and PVH (PVH 57.75, -3.06, -5.03%) pepper the bottom of today's standings. This morning, JP Morgan downgraded BBWI to Neutral citing a multi-year model "reset", DLR slips following a cautious view from Kynikos Associates' Jim Chanos, while retail names like PVH represent some of the worst-performing components of the index today.
Meanwhile, California-based healthcare plan firm Molina Healthcare (MOH 281.50, +9.27, +3.41%) is one of today's top performers, moving higher alongside healthcare peers.
Gold continues recent string of losses
29-Jun-22 14:00 ET
Dow +118.83 at 31065.82, Nasdaq -17.27 at 11164.26, S&P -1.70 at 3819.85
[BRIEFING.COM] The major average moved higher in the last 30 minutes, the Dow Jones Industrial Average (+0.38%) moving slightly into the green.
Gold futures settled $3.70 lower (-0.2%) to $1,817.50/oz, pressured by a decent move higher in the greenback.
Meanwhile, the U.S. Dollar Index is up about +0.5% to $105.06.
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