Market Snapshot
briefing.com
| Dow | 31338.35 | -46.40 | (-0.15%) | | Nasdaq | 11635.28 | +13.96 | (0.12%) | | SP 500 | 3899.41 | -3.24 | (-0.08%) | | 10-yr Note |
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| | NYSE | Adv 1450 | Dec 1631 | Vol 783 mln | | Nasdaq | Adv 2394 | Dec 1958 | Vol 4.4 bln |
Industry Watch
| Strong: Health Care, Information Technology |
| | Weak: Materials, Utilities, Real Estate, Industrials |
Moving the Market
-- Rate hike concerns stemming from hotter-than-expected June jobs report
-- Lingering growth concerns with the 2s10s spread inverted
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Choppy action to end the holiday shortened week
08-Jul-22 16:25 ET
Dow -46.40 at 31338.35, Nasdaq +13.96 at 11635.28, S&P -3.24 at 3899.41
[BRIEFING.COM] It was a choppy session for the stock market today. The market opened lower on the heels of the hotter-than-expected June jobs report before finding some upside momentum. Ultimately, the S&P 500 and Dow Jones Industrial Average gave up their midday gains and closed with modest losses. The Nasdaq was the lone index to close in the green with a modest 0.1% gain.
The S&P 500 closed up 1.9% week-to-date; the Nasdaq closed up 4.6% week-to-date; the Dow Jones Industrial Average closed up 0.8% week-to-date.
The employment situation report for June did not mitigate the concerns of market participants that the Fed is going to remain on an aggressive rate-hike path. Lingering growth concerns were also in the mix today with the 2s10s spread remaining inverted.
There was not much conviction on either side of the tape today. In the early going, decliners led advancers by a 13-to-10 margin at the NYSE and an 8-to-5 margin at the Nasdaq. By the close, decliners led advancers by a 6-to-5 margin at the NYSE while advancers led decliners by the same margin at the Nasdaq.
The mega cap stocks managed to outperform the broader market today with the Vanguard Mega Cap Growth ETF (MGK) closing up 0.1% versus a loss of 0.4% in the Invesco S&P 500 Equal Weight ETF (RSP). The S&P 500 closed down 0.1% on the day.
The Q2 earnings season will be starting in a couple weeks so earnings news has been light as of late, however, Levi Strauss (LEVI 16.58, +0.17, +1.0%) gained today after beating Q2 expectation, reaffirming its guidance for FY22 and increasing its dividend by 20%. On the downside WD-40 (WDFC 174.30, -30.55, -14.9%) fell towards its May low after missing Q3 expectation and issuing below-consensus guidance for FY22.
Nine of the 11 S&P 500 sectors closed in the red with the top laggards being materials (-1.0%), real estate (-0.6%), industrials (-0.5%), and utilities (-0.3%). The only two sectors to close in the green were health care (+0.3%) and information technology (+0.1%).
Energy futures settled the session on a mixed note. WTI crude oil futures rose 2.3% to $105.06/bbl. Unleaded gasoline futures rose 0.8% to $3.45/gal. Natural gas futures settled down 4.5% to $5.97/mmbtu after seeing huge moves to the upside yesterday.
The 2-yr note yield rose nine basis points to close at 3.12% and the 10-yr note yield rose nine basis points to close at 3.10%.
Reviewing today's economic data:
- June Nonfarm Payrolls 372K (Briefing.com consensus 250K); Prior was revised to 384K from 390K
- June Nonfarm Private Payrolls 381K (Briefing.com consensus 275K); Prior was revised to 336K from 333K
- June Avg. Hourly Earnings 0.3% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.3%
- June Unemployment Rate 3.6% (Briefing.com consensus 3.6%); Prior 3.6%
- June Average Workweek 34.5 (Briefing.com consensus 34.6); Prior was revised to 34.5 from 34.6
- The employment situation report for June did nothing to deter the market from thinking that the Fed is going to remain on an aggressive rate-hike path. That is the key takeaway from the report, which was solid in terms of nonfarm payrolls growth (372,000) and still solid in terms of average hourly earnings growth (+5.1% year-over-year). It is likely being thought, too, that wage-based inflation pressures are apt to be sticky considering the labor force participation rate slipped in June to 62.2% from 62.3%.
- The other factor market participants will contend with falls on the other side of the growth ledger. Average hourly earnings growth might be solid, but it is still trailing the inflation rate. That implies that real earnings growth remains negative, which further implies that there is apt to be pressure on discretionary spending in coming months.
- May Wholesale Inventories 1.8%; Prior was revised to 2.3% from 2.2%
- May Consumer Credit $22.3 billion; prior was revised to $36.8 billion from $38.0 billion.
- The key takeaway from the report is that consumer credit growth slowed notably over the past couple months with the May increase representing less than half of the increase that was seen in March, which may be reflecting increased caution among consumers.
- Dow Jones Industrial Average: -13.8% YTD
- S&P 400: -18.3% YTD
- S&P 500: -18.2% YTD
- Russell 2000: -21.1% YTD
- Nasdaq Composite: -25.6% YTD
Energy futures settle on a mixed note
08-Jul-22 15:30 ET
Dow +42.99 at 31427.74, Nasdaq +13.18 at 11634.50, S&P +4.79 at 3907.44
[BRIEFING.COM] There hasn't been much movement in the three main indices recently. The Dow Jones Industrial Average has a slight edge over the other indices.
Energy futures settled the session on a mixed note. WTI crude oil futures rose 2.3% to $105.06/bbl. Unleaded gasoline futures rose 0.8% to $3.45/gal. Natural gas futures settled down 4.5% to $5.97/mmbtu after seeing huge moves to the upside yesterday.
At the top of the hour, the May Consumer Credit report showed an increase of $22.3 billion versus the prior month's revised increase of $36.8 billion (from $38.0 billion).
Mega caps lead upside movement
08-Jul-22 14:55 ET
Dow +56.45 at 31441.20, Nasdaq +23.33 at 11644.65, S&P +6.10 at 3908.75
[BRIEFING.COM] The major indices reached levels near their intraday highs recently before giving back some gains.
The mega caps are boosting the broader market with the Vanguard Mega Cap Growth ETF (MGK) trading up 0.3% versus a 0.2% gain in the S&P 500. The Invesco S&P 500 Equal Weight ETF (RSP) is down 0.1%.
Also, the growth stocks have a better showing than value stocks currently. The Russell 3000 Growth Index is up 0.2% versus the Russell 3000 Value Index, which trades flat.
Six of the 11 S&P 500 sectors trade in the green with health care (+0.7%), energy (+0.4%), and consumer discretionary (+0.3%) leading the pack. The laggards include materials (-0.5%), communication services (-0.2%), and real estate (-0.2%)
McKesson, Centene benefit from broad healthcare gains on Friday
08-Jul-22 14:30 ET
Dow +43.59 at 31428.34, Nasdaq +13.14 at 11634.46, S&P +3.72 at 3906.37
[BRIEFING.COM] The major averages have scurried narrowly into positive territory, the benchmark S&P 500 (+0.10%) holds the shallowest advance.
S&P 500 constituents McKesson (MCK 333.30, +12.05, +3.75%), Centene (CNC 88.07, +2.81, +3.30%), and Hewlett Packard Enterprise (HPE 13.29, +0.25, +1.92%) dot the top of the standings. MCK and CNC both enjoy gains alongside broader strength in the healthcare (+0.6%) sector, while beaten-down HPE rallies.
Meanwhile, social media giant Twitter (TWTR 37.04, -1.75, -4.51%) is the worst-performing component today on rumors that the deal with Elon Musk is in jeopardy.
Gold slightly trims weekly losses on Friday
08-Jul-22 14:00 ET
Dow -5.83 at 31378.92, Nasdaq -2.53 at 11618.79, S&P -1.70 at 3900.95
[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (-0.02%) and its counterparts have found a comfortable move higher which put all three major averages narrowly in the green for a brief time.
Gold futures settled $2.60 higher (+0.2%) to $1,742.30/oz, trimming their fourth consecutive weekly loss, down more than 3%, amid another strong week in the greenback.
Meanwhile, the U.S. Dollar Index is down about -0.1% to $107.08.
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