Market Snapshot
briefing.com
| Dow | 31175.72 | -162.63 | (-0.52%) | | Nasdaq | 11372.57 | -262.71 | (-2.26%) | | SP 500 | 3854.50 | -44.91 | (-1.15%) | | 10-yr Note |
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| | NYSE | Adv 945 | Dec 2133 | Vol 801 mln | | Nasdaq | Adv 1198 | Dec 3155 | Vol 4.2 bln |
Industry Watch
| Strong: Utilities, Real Estate |
| | Weak: Communication Services, Information Technology, Consumer Discretionary, Energy, Financials |
Moving the Market
-- Downside leadership from mega caps
-- Hesitation ahead of Wednesday's CPI report
-- Growth concerns stemming from new lockdowns in China and the inverted 2s10s spread
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Market adds to its losses ahead of CPI report
11-Jul-22 16:20 ET
Dow -162.63 at 31175.72, Nasdaq -262.71 at 11372.57, S&P -44.91 at 3854.50
[BRIEFING.COM] The stock market opened on a low note and couldn't find the upside momentum to shake those losses. The major indices all closed near session lows as market participants are likely hesitant ahead of Wednesday's CPI report.
Growth concerns were at the forefront of trading activity today after casinos in Macau shut down once again in response to rising coronavirus cases and the euro and British pound fell to fresh lows for the year against the dollar, reflecting worries about the European economy.
The mega caps were an important downside driver with the Vanguard Mega Cap Growth ETF (MGK) closing down 1.9% versus a 1.2% loss in the S&P 500. The Invesco S&P 500 Equal Weight ETF (RSP), for its part, closed down 0.9%. Meta Platforms (META 162.88, -7.99, -4.7%) was one of the biggest laggards after being downgraded to Underperform from Hold at Needham. Tesla (TSLA 703.03, -49.26, -6.6%) was the single worst performing mega cap after Elon Musk walked away from his acquisition deal with Twitter (TWTR 32.64, -4.16, -11.3%).
Buyers showed reluctance this session with declining issues leading advancing issues by a 5-to-2 margin at the NYSE and a roughly 3-to-1 margin at the Nasdaq.
Nine of the 11 S&P 500 sectors closed in negative territory. The holdouts in the green were real estate (+0.1%) and utilities (+0.6%). Countercyclical sectors, consumer staples (-0.2%) and health care (-0.2%), also closed ahead of the S&P 500, though in negative territory.
Influential groups like technology (-1.3%), consumer discretionary (-2.3%), and communication services (-2.3%) dotted the bottom of today's leaderboard. These sectors contain many multinational companies, whose foreign earnings are expected to see pressure from the recent dollar strength, which has lifted the U.S. Dollar Index to a level not seen since late 2002. The Index has gained 6.1% since the end of May. For instance Apple (AAPL 144.87, -2.17, -1.5%), Alphabet (GOOG 2330.45, -72.92, -3.0%), and Microsoft (MSFT 264.51, -3.15, -1.2%) lost between 1.2% and 3.0%.
Notably dragging down the consumer discretionary sector were two of the biggest S&P 500 laggards today, Wynn Resorts (WYNN 52.81, -3.65, -6.5%) and Las Vegas Sands (LVS 32.21, -2.17, -6.3%), trading down in response to the news from Macau. To be fair, the second biggest sector component, Tesla, lost nearly 7% falling back below its 50-day moving average. Meanwhile, the largest discretionary component, Amazon.com (AMZN 111.75, -3.79, -3.3%), also fell back below its 50-day moving average but recorded a slimmer loss.
The 2s10s spread stayed inverted with the 2-yr note yield settling down six basis points to 3.06% and the 10-yr note yield settling down 11 basis points to 2.99%.
The energy complex settled mostly higher, though WTI crude oil futures fell 1.3% to $103.74/bbl. Natural gas futures rose 5.9% to $6.32/mmbtu. Unleaded gasoline futures rose 0.2% to $3.46/gal.
After the close, PepsiCo (PEP 170.55, -1.33, -0.8%) is set to report earnings results.
Looking ahead to Tuesday, market participants will receive the June NFIB Small Business Optimism (prior 93.1) at 6:00 a.m. ET.
- Dow Jones Industrial Average: -14.2% YTD
- S&P 400: -19.4% YTD
- S&P 500: -19.1% YTD
- Russell 2000: -22.9% YTD
- Nasdaq Composite: -27.3% YTD
Energy futures settle mostly higher
11-Jul-22 15:25 ET
Dow -186.75 at 31151.60, Nasdaq -255.10 at 11380.18, S&P -45.88 at 3853.53
[BRIEFING.COM] Each of the main indices is trending towards their intraday lows in recent action.
The energy complex settled mostly higher. WTI crude oil futures fell 1.3% to $103.74/bbl. Natural gas futures rose 5.9% to $6.32/mmbtu. Unleaded gasoline futures rose 0.2% to $3.46/gal.
The 2s10s spread stayed inverted with the 2-yr note yield settling down six basis points to 3.06% and the 10-yr note yield settling down 11 basis points to 2.99%.
After the close, PepsiCo (PEP 170.78, -1.10, -0.6%) is set to report earnings results.
Looking ahead to Tuesday, market participants will receive the June NFIB Small Business Optimism (prior 93.1) at 6:00 a.m. ET.
Tesla getting hit today
11-Jul-22 15:00 ET
Dow -107.94 at 31230.41, Nasdaq -223.59 at 11411.69, S&P -37.61 at 3861.80
[BRIEFING.COM] The major indices are moving sideways elevated off session lows.
The mega caps continue their underperformance today. Tesla (TSLA 705.63, -46.69, -6.2%) is the top laggard among the mega caps, having fallen below its 50-day moving average of 736.79.
Tesla is pulling down the S&P 500 consumer discretionary sector (-2.4%), which is having a weak showing today as the second biggest laggard.
Separately, the value stocks are performing better today than the growth stocks. The Russell 3000 Value Index is down 0.7% versus a steeper loss of 1.3% in the Russell 3000 Growth Index.
Large cap names like Tesla, Netflix underperform in S&P 500
11-Jul-22 14:30 ET
Dow -82.09 at 31256.26, Nasdaq -204.99 at 11430.29, S&P -34.13 at 3865.28
[BRIEFING.COM] The S&P 500 (-0.88%) sits firmly in second place to this point on Monday.
S&P 500 constituents Tesla (TSLA 707.74, -44.55, -5.92%), Paramount Global (PARA 24.15, -1.41, -5.52%), and Netflix (NFLX 179.60, -7.37, -3.94%) dot the bottom of the index. TSLA is one of today's worst-performing names behind what has become a fairly heated negative sentiment toward CEO Elon Musk, while Sell rated Rosenblatt lowered their target on PARA, and NFLX follows general tech/communication services sector.
Meanwhile, Cboe Global Markets (CBOE 121.25, +2.74, +2.31%) tops the standings; this morning, CBOE caught a target raise out of UBS.
Gold falls to almost 10-month lows to open week
11-Jul-22 14:00 ET
Dow +14.25 at 31352.60, Nasdaq -162.68 at 11472.60, S&P -21.05 at 3878.36
[BRIEFING.COM] The tech-heavy Nasdaq Composite (-1.40%) hosts the steepest losses among the major averages with about two hours to go on Monday.
Gold futures settled $10.60 lower (-0.6%) to $1,731.70/oz, pressured in part by a decent move higher in the dollar, falling to Sept. 2021 lows.
Meanwhile, the U.S. Dollar Index is up about +0.9% to $107.95.
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