Market Snapshot
briefing.com
| Dow | 31384.75 | +346.87 | (1.12%) | | Nasdaq | 11621.32 | +259.49 | (2.28%) | | SP 500 | 3902.65 | +57.54 | (1.50%) | | 10-yr Note |
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| | NYSE | Adv 2403 | Dec 744 | Vol 900 mln | | Nasdaq | Adv 3213 | Dec 1172 | Vol 4.6 bln |
Industry Watch
| Strong: Energy, Financials, Materials, Consumer Discretionary |
| | Weak: Utilities |
Moving the Market
-- Rally on yesterday's gains
-- Broad based buying interest
-- Strength in semiconductors, which have leading indicator status
-- Reversal of price action in energy futures
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Rebound effort held up ahead of jobs report
07-Jul-22 16:20 ET
Dow +346.87 at 31384.75, Nasdaq +259.49 at 11621.32, S&P +57.54 at 3902.65
[BRIEFING.COM] The stock market was looking to keep the momentum going from yesterday, and it did just that. The market opened on a high note and built on those gains with each of the three main indices exhibiting a gain of at least 1.0% at the close. With a gain of 1.5%, the S&P 500 closed just above the 3,900 level.
Buyers showed up today to support the rebound effort as evidenced by market breadth. Advancers led decliners by a roughly 3-to-1 margin at both the NYSE and the Nasdaq.
There were a few factors acting like a positive feedback loop to the buying effort. The bounce coincided with the price action reversal in energy futures and the strength in semiconductors, which hold a leading indicator status.
Energy futures were increasing all day but natural gas futures saw a sharp upturn after the EIA natural gas inventories report this morning. They settled the session up 13.6% to $6.25/mmbtu. WTI crude oil futures settled the session up 4.0% to $102.68/bbl. Unleaded gasoline futures rose 7.0% to $3.68/gal.
Semiconductors had a good showing today with the PHLX Semiconductor Index closing up 4.5%. Every index component closed in the green with the biggest gains seen in ON Semiconductors (ON 51.94, +4.33, +9.1%), KLA Corp (KLAC 314.54, +21.54, +7.4%), and TSMC (TSM 80.75, +5.19, +6.7%).
Copper, another leading indicator commodity, saw big upside moves today, rising 3.5% to $3.55/lb.
Ten of the 11 S&P 500 sectors closed in positive territory with the lone laggard being utilities (-0.1%). Fellow countercyclical sectors, consumer staples (+0.1%) and health care (+0.1%), closed in the green but trailed behind the broader market.
The top performing sectors were energy (+3.5%), consumer discretionary (+2.5%), information technology (+2.1%), and communication services (+2.0%).
Despite the bounce, the 2s10s spread remains inverted. The 2-yr Treasury note yield rose nine basis points to 3.03% while the 10-yr note yield rose ten basis points to 3.01%.
Reviewing today's economic data:
- Weekly Initial Claims 235K (Briefing.com consensus 234K); Prior 231K; Weekly Continuing Claims 1.375 mln; Prior was revised to 1.324 mln from 1.328 mln
- The key takeaway from the report is that claims have spent the past few weeks in a narrow range, suggesting little room left for improvement.
- May Trade Balance -$85.5 bln (Briefing.com consensus -$84.9 bln); Prior was revised to -$86.7 bln from -$87.1 bln
- The key takeaway from the report is that the deficit with China decreased by $2.8 bln to $32.2 bln, though this was largely due to reduced manufacturing activity as China implemented coronavirus lockdowns.
- Crude oil inventories had a build of 8.24 mln barrels
- Prior week showed a draw of 2.76 mln barrels
- Gasoline inventories had a draw of 2.50 mln barrels
- Prior week showed a build of 2.56 mln barrels
Looking ahead to Friday, market participants will receive the following economic data:
- 8:30 ET: June Nonfarm Payrolls (Briefing.com consensus 250,000; prior 390,000), Nonfarm Private Payrolls (Briefing.com consensus 275,000; prior 333,000), Unemployment Rate (Briefing.com consensus 3.6%; prior 3.6%), Average Hourly Earnings (Briefing.com consensus 0.3%; prior 0.3%), and Average Workweek (Briefing.com consensus 34.6; prior 34.6)
- 10:00 ET: May Wholesale Inventories (prior 2.2%)
- 15:00 ET: May Consumer Credit (prior $38.00 bln)
- Dow Jones Industrial Average: -13.6% YTD
- S&P 400: -18.1% YTD
- S&P 500: -18.2% YTD
- Russell 2000: -21.2% YTD
- Nasdaq Composite: -25.7% YTD
Continuing to climb into the close
07-Jul-22 15:30 ET
Dow +375.44 at 31413.32, Nasdaq +279.56 at 11641.39, S&P +62.10 at 3907.21
[BRIEFING.COM] The three main indices have climbed higher in recent action with the S&P 500 tipping back over the 3,900 level.
Energy futures made big upside moves with natural gas futures leading the charge, settling up 13.6% to $6.25/mmbtu. There was a sharp upturn after this morning's EIA natural gas inventories release. WTI crude oil futures settled the session up 4.0% to $102.68/bbl. Unleaded gasoline futures rose 7.0% to $3.68/gal.
Looking ahead to Friday, market participants will receive the following economic data:
- 8:30 ET: June Nonfarm Payrolls (Briefing.com consensus 250,000; prior 390,000), Nonfarm Private Payrolls (Briefing.com consensus 275,000; prior 333,000), Unemployment Rate (Briefing.com consensus 3.6%; prior 3.6%), Average Hourly Earnings (Briefing.com consensus 0.3%; prior 0.3%), and Average Workweek (Briefing.com consensus 34.6; prior 34.6)
- 10:00 ET: May Wholesale Inventories (prior 2.2%)
- 15:00 ET: May Consumer Credit (prior $38.00 bln)
Mega caps pull ahead of broader market
07-Jul-22 14:55 ET
Dow +302.35 at 31340.23, Nasdaq +248.04 at 11609.87, S&P +53.62 at 3898.73
[BRIEFING.COM] The S&P 500 briefly pushed above the 3,900 level in recent action but each major index has pulled back from their highs.
The mega caps have pulled ahead of the broader market with the Vanguard Mega Cap Growth ETF (MGK) up 1.8% versus a 1.4% gain in the S&P 500. The Invesco S&P 500 Equal Weight ETF (RSP) is up 1.4%.
The top performing mega caps are NVIDIA (NVDA 158.53, +7.26, +4.8%), Tesla (TSLA 732.72, +37.37, +5.4%), and Alphabet (GOOG 2385.62, +81.35, +3.5%).
Separately, the CBOE VIX Index has been declining today, currently down 2.8% to 25.97.
Additionally, copper futures made big upside moves today, settling the session up 3.5% to $3.55/lb.
Moderna gains alongside vaccine peers, Colgate-Palmolive slips on cons. staples weakness
07-Jul-22 14:30 ET
Dow +311.39 at 31349.27, Nasdaq +259.51 at 11621.34, S&P +56.04 at 3901.15
[BRIEFING.COM] The S&P 500 (+1.46%) is firmly in second place to this point on Thursday.
S&P 500 constituents Moderna (MRNA 172.09, +12.53, +7.85%), Carnival (CCL 9.38, +0.64, +7.32%), and Generac (GNRC 230.73, +13.55, +6.24%) pepper the top of the index. MRNA outperforms generally, alongside other vaccine names, while CCL benefits from strength in consumer discretionary stocks.
Meanwhile, consumer staples giant Colgate-Palmolive (CL 78.84, -2.18, -2.69%) underperforms alongside other staples peers.
Gold snaps losing streak
07-Jul-22 14:00 ET
Dow +273.60 at 31311.48, Nasdaq +246.78 at 11608.61, S&P +52.09 at 3897.20
[BRIEFING.COM] A steady rise in the tech-heavy Nasdaq Composite (+2.17%) has the index atop the standings with about two hours to go on Thursday.
Gold futures settled $3.20 higher (+0.2%) to $1,739.70/oz, snapping what had become the yellow metal's longest losing streak in three years.
Meanwhile, the U.S. Dollar Index is up about +0.1% to $107.17.
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