Market Snapshot
briefing.com
| Dow | 31037.88 | +69.86 | (0.23%) | | Nasdaq | 11361.83 | +39.61 | (0.35%) | | SP 500 | 3845.11 | +13.69 | (0.36%) | | 10-yr Note |
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| | NYSE | Adv 1163 | Dec 1936 | Vol 1.0 bln | | Nasdaq | Adv 1823 | Dec 2561 | Vol 4.7 bln |
Industry Watch
| Strong: Real Estate, Consumer Staples, Health Care, Utilities, Information Technology |
| | Weak: Energy, Financials, Consumer Discretionary |
Moving the Market
-- Lingering growth concerns
-- Downturn in energy futures
-- Relative strength in mega-cap stocks
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Market sees volatility in the face of growth concerns
06-Jul-22 16:20 ET
Dow +69.86 at 31037.88, Nasdaq +39.61 at 11361.83, S&P +13.69 at 3845.11
[BRIEFING.COM] The stock market exhibited a bit of volatility today in the face of general growth concerns. The major indices were trading lower most of the day before closing with modest gains after a late session rally attempt.
The early going was marked by a lack of buyer conviction with declining issues leading advancing issues by an 11-to-5 margin at the NYSE and an 8-to-5 margin at the Nasdaq. Buyers stepped in some by the close, narrowing the spread of decliners to advancers to an 8-to-5 margin at the NYSE and a 6-to-5 margin at the Nasdaq.
The mega caps offered some support to the broader market. The Vanguard Mega Cap Growth ETF (MGK) closed up 0.6% versus a 0.4% gain in the S&P 500. The Invesco S&P 500 Equal Weight ETF (RSP) closed flat.
The top performing S&P 500 sectors today were utilities (+1.0%), information technology (+0.9%), health care (+0.7%), materials (+0.6%), and industrials (+0.6%).
The only three sectors to close in negative territory were consumer discretionary (-0.2%), financials (-0.3%), and energy (-1.7%) which lagged by a wide margin.
Energy futures mostly fell this session. WTI crude oil futures fell as low as $95.10/bbl before settling the session down 0.7% to $98.69/bbl. Unleaded gasoline futures closed near the intraday low, down 3.1% to $3.24/gal. Natural gas futures went against the grain, settling up 0.2% to $5.50/mmbtu.
Treasury yields saw some whipsaw action with the 2s10s spread remaining inverted. The 2-yr note yield settled up 12 basis points to 2.94%, after hitting 2.76% before the open, while the 10-yr note yield settled up ten basis points to 2.91% after scraping 2.74% before the open.
The U.S. Dollar Index closed up 0.5% to 107.06 as the euro continues to slip toward parity with the dollar (EUR/USD -0.8% to 1.0185).
The minutes for the June 14-15 FOMC meeting were released this afternoon. All in all, there was nothing surprising in the minutes, which conveyed the Fed's commitment to restoring price stability.
Reviewing today's economic data:
- Weekly MBA Mortgage Applications Index -5.4%; Prior 0.7%
- June IHS Markit Services PMI - Final 52.7; Prior 51.6
- June ISM Non-Manufacturing Index 55.3% (Briefing.com consensus 54.2%); Prior 55.9%
- The key takeaway from the June report is that business activity for the non-manufacturing sector was better than expected, although growth slowed for the third straight month as businesses continued to grapple with pricing pressures, supply chain issues, and labor supply constraints.
- May JOLTS - Job Openings 11.254 mln; Prior was revised to 11.681 mln from 11.400 mln
Looking ahead to Thursday, market participants will receive the weekly initial jobless claims (Briefing.com consensus 234,000; prior 231,000) and continuing claims (prior 1.328 million) as well as the May trade balance (Briefing.com consensus -$84.9 billion; prior -$87.1 billion) at 8:30 a.m. ET, the EIA natural gas inventories (prior +82 bcf) at 10:30 a.m. ET, and EIA crude oil inventories (prior -2.76 million) at 11:00 a.m. ET.
- Dow Jones Industrial Average: -14.6% YTD
- S&P 400: -19.8% YTD
- S&P 500: -19.3% YTD
- Russell 2000: -23.1% YTD
- Nasdaq Composite: -27.4% YTD
Information technology sector has the top spot
06-Jul-22 15:30 ET
Dow +213.96 at 31181.98, Nasdaq +104.41 at 11426.63, S&P +33.07 at 3864.49
[BRIEFING.COM] The major indices have all climbed to new session highs in the last half hour.
The information technology sector (+1.6%) has been outperforming today, currently occupying the top spot. Several of its components rallied above their 50-day moving average today including Microsoft (MSFT 267.47, +4.70, +1.8%), Motorola Solutions Inc. (MSI 217.13, +4.90, +2.3%), and Automatic Data Processing (ADP 218.44, +5.96, +2.8%).
WTI crude oil futures rose off their intraday lows to settle the session down 0.7% to $98.69/bbl. Natural gas futures rose 0.2% to $5.50/mmbtu. Unleaded gasoline futures closed near the intraday low, down 3.1% to $3.24/gal.
Looking ahead to Thursday, market participants will receive the weekly initial jobless claims (Briefing.com consensus 234,000; prior 231,000) and continuing claims (prior 1.328 million) as well as the May trade balance (Briefing.com consensus -$84.9 billion; prior -$87.1 billion) at 8:30 a.m. ET, the EIA natural gas inventories (prior +82 bcf) at 10:30 a.m. ET, and EIA crude oil inventories (prior -2.76 million) at 11:00 a.m. ET.
Mega caps lead upside move
06-Jul-22 15:00 ET
Dow +148.39 at 31116.41, Nasdaq +82.89 at 11405.11, S&P +25.84 at 3857.26
[BRIEFING.COM] There was a spike in the broader market near the bottom of the hour that had the earmark of being a buy program trade. Every sector moved up at that time, although the energy sector trailed the move made by other sectors.
The mega caps were active participants in this trade which helped improve the standing of the major indices. The Vanguard Mega Cap Growth ETF (MGK) is up 0.9% versus a 0.6% gain in the S&P 500. The Invesco S&P 500 Equal Weight ETF (RSP) is up 0.3%.
Most mega cap stocks are in positive territory with the exception of Tesla (TSLA 696.79, -2.61, -0.4%). The biggest outperformers are NVIDIA (NVDA 152.37, +2.81, +1.9%), Microsoft (MSFT 266.99, +4.18, +1.6%), and Alphabet (GOOG 2313.17, +35.43, +1.6%). Microsoft has climbed above its 50-day moving average (264.78) in recent action.
Additionally, growth stocks have a slight performance edge over the value stocks. The Russell 3000 Growth Index trades up 0.5% while the Russell 3000 Value Index trades flat.
FOMC minutes show a more restrictive stance could be appropriate given hot inflation
06-Jul-22 14:30 ET
Dow -41.11 at 30926.91, Nasdaq -13.18 at 11309.04, S&P -2.51 at 3828.91
[BRIEFING.COM] The major averages jostled around following the release of the FOMC's June policy meeting minutes. The benchmark S&P 500 (-0.07%) holds the slimmest losses.
Interestingly, many participants judged that a significant risk now facing the Committee was that elevated inflation could become entrenched if the public began to question the resolve of the Committee to adjust the stance of policy as warranted.
In discussing potential policy actions at upcoming meetings, participants continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate to achieve the Committee's objectives. In particular, participants judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting.
Among other key excerpts from the minutes, participants saw little evidence to date of a substantial improvement in supply constraints, and some of them judged that the economic effects of these constraints were likely to persist longer than they had previously anticipated. The Committee also observed that it would likely take some time for inflation to move down to the Committee's 2 percent objective.
Gold falls again as dollar continues to rise
06-Jul-22 13:55 ET
Dow -66.08 at 30901.94, Nasdaq +4.84 at 11327.06, S&P -0.88 at 3830.54
[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.04%) continues to hover just above yesterday's close ahead of the June FOMC minutes which will hit at the top of the hour.
Gold futures settled $27.40 lower (-1.6%) to $1,736.50/oz, pressured again as the dollar continues to rise.
Meanwhile, the U.S. Dollar Index is up about +0.5% to $107.05.
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