|Dow ||30483.13 ||-47.12 || (-0.15%) |
|Nasdaq ||11053.07 ||-16.22 || (-0.15%) |
|SP 500 ||3759.89 ||-4.90 || (-0.13%) |
|10-yr Note || || || |
|NYSE ||Adv 1638 || Dec 1634 || Vol 1.2 bln |
|Nasdaq ||Adv 2297 || Dec 2289 || Vol 5.1 bln |
|Strong: Health Care, Utilities, Communication Services, Real Estate |
|Weak: Energy, Materials, Industrial, Information Technology, Financials |
Moving the Market
|-- General growth concerns |
-- Steady showing from mega caps
-- Encouraging price action, as market was quick to recoup opening losses
22-Jun-22 16:10 ET
Dow -47.12 at 30483.13, Nasdaq -16.22 at 11053.07, S&P -4.90 at 3759.89
[BRIEFING.COM] The bulls and bears did battle again today. The final standing of the major indices suggests things ended in a draw. There was little change in the major indices, yet that was actually a victory for the bulls.
It was a victory on several counts:
In brief, the stock market had ample reasons to sell aggressively into yesterday's strength but it didn't. That resilience fostered a sense that the existing growth concerns have been adequately priced into the market for now. One can only hope. Entering today, the Dow, Nasdaq, S&P 500, S&P 400, and Russell 2000 were down 12.0%, 22.1%, 16.9%, 16.5%, and 18.2%, respectively, for the quarter.
- It was a victory because the market maintained the bulk of yesterday's gains.
- It was a victory because the Dow, Nasdaq, and S&P 500 battled back from opening declines of 1.2%, 1.3%, and 1.2%, respectively.
- It was a victory because Fed Chair Powell acknowledged in his Semiannual Monetary Policy testimony to the Senate Banking Committee that it is going to be challenging to achieve a soft landing.
- It was a victory because there were clear growth concerns below the index level.
The scope of those losses has contributed to the thinking that rebalancing activity at quarter end could lead to a needed markup in stock prices. That view helped hold today's line so to speak, as did the quick recovery effort following the opening slide.
That's not to say that today was an entirely convincing move for a market that has been predisposed to selling into strength all year. Rather, it's just to say that today invited a test of sentiment and that the bulls didn't indisputably fail that test.
A fairly steady performance from the mega-cap stocks helped hold the index line, which was also supported by relative strength in the real estate (+1.6%), health care (+1.4%), and utilities (+1.0%) sectors. That helped offset relative weakness in the information technology (-0.4%) sector and the more cyclically-oriented energy (-4.2%), materials (-1.3%), and industrials (-0.5%) sectors.
Energy was a major drag throughout the day, giving in to global growth concerns that knocked WTI crude oil futures down 3.2% to $106.07/bbl. There was no pull from the demand-supportive news that President Biden has called on Congress to suspend the national tax on gas and diesel for three months.
Similarly, copper futures fell 2.1% to $3.95/lb on the growth concerns, which also manifested themselves in the Treasury market. The 2-yr note yield dropped 17 basis points to 3.05% and the 10-yr note yield dropped 15 basis points to 3.16%.
Today's lone economic report was the MBA's weekly Mortgage Applications Index. It jumped 4.2% on an 8% increase in purchase applications that featured strong demand for adjustable rate mortgages.
Looking ahead, market participants will receive the Q1 Current Account Balance (8:30 a.m. ET), weekly initial claims (8:30 a.m. ET), and preliminary June IHS Markit Manufacturing and Services PMIs (9:45 a.m. ET) on Thursday. Additionally, Fed Chair Powell will appear before the House Financial Services Committee at 10:00 a.m. ET for day two of his semiannual monetary policy testimony.
- Dow Jones Industrial Average: -16.2% YTD
- S&P 500: -21.1% YTD
- S&P 400: -21.3% YTD
- Russell 2000: -24.8% YTD
- Nasdaq Composite: -29.4% YTD
Not much change heading into the close
22-Jun-22 15:25 ET
Dow +95.82 at 30626.07, Nasdaq +52.65 at 11121.94, S&P +16.27 at 3781.06
[BRIEFING.COM] The major indices have been sticking to a narrow range in recent trading.
The price of energy has been on the forefront today with President Biden asking Congress to pause the national gas tax for 90 days. On a related note, WTI crude oil futures settled down 3.2% to $106.07/bbl and natural gas futures settled up 0.9%.
Treasury yields have continued their steady decline with the 10-yr note yield down 15 basis points to 3.15% and the 2-yr note yield down 16 basis points 3.05%.
Looking ahead to Thursday, Fed Chair Powell will be back on Capitol Hill for day two of his testimony with a 10:00 a.m. ET appearance before the House Financial Services Committee.
In addition, there will be the Q1 Current Account Balance (8:30 ET), weekly initial jobless claims and continuing claims (8:30 ET), June IHS Markit Manufacturing PMI preliminary reading (9:45 ET), and June IHS Markit Services PMI preliminary reading (9:45 ET) released tomorrow morning.
Dow Jones Transportation Average taking a hit
22-Jun-22 15:00 ET
Dow +131.06 at 30661.31, Nasdaq +74.43 at 11143.72, S&P +22.09 at 3786.88
[BRIEFING.COM] The major indices are trading near session highs currently with the Dow Jones Industrial Average (+0.5%) trailing behind the other indices.
As the energy futures have pulled back a bit today so too has the Dow Jones Transportation Average, down 0.8% currently. Shipping company Matson Inc. (MATX 69.40, -4.35, -6.0%) is the biggest laggard, followed by Kirby Corp. (KEX 57.41, -2.14, -3.6%) and Avis Budget (CAR 154.36, -5.58, -3.5%).
The top performing constituents are a few airline stocks that took a hit in recent sessions. Southwest (LUV 35.70, +0.39, +1.0%), American Airlines (AAL 13.13, +0.10, +0.7%), and United Airlines (UAL 36.71, +0.20, +0.6%). The U.S. Global Jets ETF (JETS) is also trading in the green today, up 0.6%.
Altria slips as FDA hints as possible Juul product ban
22-Jun-22 14:30 ET
Dow +149.26 at 30679.51, Nasdaq +83.05 at 11152.34, S&P +23.21 at 3788.00
[BRIEFING.COM] The S&P 500 (+0.62%) sits comfortably in second place on Wednesday afternoon, having topped session highs in the last 30 minutes.
S&P 500 constituents Moderna (MRNA 138.79, +8.80, +6.77%), Crown Castle (CCI 170.92, +8.96, +5.53%), and Etsy (ETSY) dot the top of today's standings. Earlier, MRNA announced plans to open a vaccine research and manufacturing center in the UK, CCI enjoys a nice move higher amid broader strength in the real estate sector, while beaten-up tech names like ETSY get some life at midweek.
Meanwhile, tobacco giant Altria (MO 41.42, -4.28, -9.37%) is today's top decliner after reports that the FDA was planning to order Juul e-cigarette products off the market.
Gold slips off morning highs, ends barely lower for second day in a row
22-Jun-22 14:00 ET
Dow +124.77 at 30655.02, Nasdaq +63.13 at 11132.42, S&P +19.45 at 3784.24
[BRIEFING.COM] With about two hours remaining on Wednesday the tech-heavy Nasdaq Composite (+0.57%) holds a narrow lead among the major averages.
Gold futures settled less than $1 lower (flat) to $1,838.40/oz, registering meagre losses for back-to-back days.
Meanwhile, the U.S. Dollar Index is down approx. -0.3% to $104.12.