Market Summary
from Briefing.comIndustry Watch
Strong: Financials, Consumer Discretionary, Industrials, Health Care
Weak: Real Estate, Utilities, Consumer Staples, Energy
Market Moving Factors
- Discretionary sector in focus after sales/earnings warnings from several components
- Airlines outperform after upbeat December traffic data from Alaska Air (ALK)
[BRIEFING.COM] The major averages ended Tuesday's session on a mixed note. The Nasdaq (+0.4%) finished out front, followed by the S&P 500 (unch) and the Dow (-0.2%).
Today's session got off to a flat start after some retailers and restaurants issued disappointing guidance. The cautions comments were shrugged off swiftly, as buyers pushed Chipotle Mexican Grill (CMG 414.48, +19.42), Papa Murphy's (FRSH 4.54, +0.29), and Express (EXPR 10.78, +0.47) higher despite their negative guidance. The three names added between 4.6% and 6.8%, while the SPDR S&P 500 Retail ETF (XRT 44.33, +0.51) added 1.2%. Consumer discretionary (+0.4%) finished in line with financials (+0.4%) and just ahead of health care (+0.3%) atop the leaderboard. However, strength in those sectors could not prevent the S&P 500 from reversing off its high in the afternoon. The index returned to its flat line after a brief appearance above Friday's record close.
Health care marked its session high alongside the broader market around noon, but maintained that level while the rest of the market faced an afternoon retreat. The health care sector had some help from biotechnology, evidenced by the 0.8% increase in the iShares Nasdaq Biotechnology ETF (IBB 286.48, +2.18).
Industrials (+0.3%) also outperformed, aided by an uptick in in airlines after Alaska Air (ALK 92.00, +4.53) reported better-than-expected December traffic data. The sector also received a boost from automakers, with General Motors (GM 37.35, +1.34) adding 3.7% in reaction to upside guidance for 2017.
Materials (+0.1%), telecom services (+0.1%), and the top-weighted technology (-0.1%) sector finished the trading day flat. The tech space ended with a slight loss even though strength in chipmakers sent the PHLX Semiconductor Index higher by 0.5%. The sector couldn't overcome lackluster performances from top components like IBM (IBM 165.52, -2.13) and Oracle (ORCL 38.66, -0.37). The two names finished lower by 1.3% and 1.0%, respectively.
Energy (-1.0%) was the only other cyclical sector to finish in negative territory. The space couldn't overcome crude oil's 2.2% retreat as the commodity finished its trading day at $50.82/bbl. Real estate was the only sector to finish below the energy sector, with a loss of 1.2%. Consumer staples (-0.6%) finished slightly better, while the utilities sector (-0.3%) ended closer to its flat line.
The Treasury market remained relatively flat throughout today's session. The 2-yr yield closed unchanged at 1.19%, while the 10-yr yield finished up one basis point at 2.38%.
Today's trading volume finished above the 50-day moving average as 1.17 billion shares changed hands at the NYSE floor.
Reviewing today's economic data:
Today's session got off to a flat start after some retailers and restaurants issued disappointing guidance. The cautions comments were shrugged off swiftly, as buyers pushed Chipotle Mexican Grill (CMG 414.48, +19.42), Papa Murphy's (FRSH 4.54, +0.29), and Express (EXPR 10.78, +0.47) higher despite their negative guidance. The three names added between 4.6% and 6.8%, while the SPDR S&P 500 Retail ETF (XRT 44.33, +0.51) added 1.2%. Consumer discretionary (+0.4%) finished in line with financials (+0.4%) and just ahead of health care (+0.3%) atop the leaderboard. However, strength in those sectors could not prevent the S&P 500 from reversing off its high in the afternoon. The index returned to its flat line after a brief appearance above Friday's record close.
Health care marked its session high alongside the broader market around noon, but maintained that level while the rest of the market faced an afternoon retreat. The health care sector had some help from biotechnology, evidenced by the 0.8% increase in the iShares Nasdaq Biotechnology ETF (IBB 286.48, +2.18).
Industrials (+0.3%) also outperformed, aided by an uptick in in airlines after Alaska Air (ALK 92.00, +4.53) reported better-than-expected December traffic data. The sector also received a boost from automakers, with General Motors (GM 37.35, +1.34) adding 3.7% in reaction to upside guidance for 2017.
Materials (+0.1%), telecom services (+0.1%), and the top-weighted technology (-0.1%) sector finished the trading day flat. The tech space ended with a slight loss even though strength in chipmakers sent the PHLX Semiconductor Index higher by 0.5%. The sector couldn't overcome lackluster performances from top components like IBM (IBM 165.52, -2.13) and Oracle (ORCL 38.66, -0.37). The two names finished lower by 1.3% and 1.0%, respectively.
Energy (-1.0%) was the only other cyclical sector to finish in negative territory. The space couldn't overcome crude oil's 2.2% retreat as the commodity finished its trading day at $50.82/bbl. Real estate was the only sector to finish below the energy sector, with a loss of 1.2%. Consumer staples (-0.6%) finished slightly better, while the utilities sector (-0.3%) ended closer to its flat line.
The Treasury market remained relatively flat throughout today's session. The 2-yr yield closed unchanged at 1.19%, while the 10-yr yield finished up one basis point at 2.38%.
Today's trading volume finished above the 50-day moving average as 1.17 billion shares changed hands at the NYSE floor.
Reviewing today's economic data:
- November Wholesale Inventories increased 1.0%, which was above the Briefing.com consensus of 0.9%. The prior month's reading was revised to -0.1% from -0.4%.
- November Job Openings and Labor Turnover Survey showed that job openings decreased to 5.198 million from a revised 5.451 million (from 5.534 million) in October. For more on these economic releases, be sure to visit Briefing.com's economic calendar
- Russell 2000 +1.0% YTD
- Dow Jones Industrial Average +0.5% YTD
- S&P 500 +1.3% YTD
- Nasdaq Composite +3.1% YTD
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Economic Data
from Briefing.com| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jan 10 | 10:00 | JOLTS - Job Openings | Nov | 5.522M | NA | NA | 5.451M | 5.534M |
| Jan 10 | 10:00 | Wholesale Inventories | Nov | 1.0% | 0.9% | 0.9% | -0.1% | -0.4% |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE19855.53 -31.85 (-0.16%)
Volume: 299.41 Mil above average of 196.32 Mil
Range: 19836.03 - 19957.12
S&P 500 INDEX
2268.9 0.00 (0.00%)
Volume: 2138.02 Mil above average of 1326.24 Mil
Range: 2265.27 - 2279.27
DOW JONES TRANSPORTATION AVERAGE
9095.07 +72.24 (+0.80%)
Volume: 56.00 Mil above average of 34.69 Mil
Range: 9025.08 - 9144.4
NASDAQ COMPOSITE
5551.819824 +20.00 (+0.36%)
Volume: 1796.50 Mil below average of 1899.76 Mil
Range: 5528.109863 - 5564.25
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Market Internal
NYSE :Higher than average volume @ 918.2M vs 909.3M
Advancers outpaced Decliners(adv/dec): 1867M/1054M
New highs outpaced low(high/low): 87/12
NASDAQ :
Lower than average volume @ 1782.2M vs 1845.7M
Advancers outpaced Decliners(adv/dec): 1861M/979M
New highs outpaced low(high/low): 104/23
Advancers outpaced Decliners by 1.83 to 1 on lower volumes 2700.4 ( -1.98%) than avg 2755 (+0.27%)
VOLATILITY S&P500 (VIX) :
11.49 -0.07 (-0.61%)
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Bonds
from Briefing.comBonds
Market Moving Factors- Gold for February delivery trades to a 5-week high of $1,190.5/troy oz, now up 0.41% to $1,189.8
- November Wholesale Inventories: Actual 1.0%, Briefing.com consensus 0.9%, Prior -0.1% (revised from -0.4%)
- November JOLTS -- Job Openings: Actual 5.522M, Prior 5.451M
- Richmond Fed President Lacker (non-voter) to step down October 1
- $24 bln 3-year Treasury auction: High yield 1.472%, Bid-to-cover 2.97, Indirect bid 54.6%, Direct bid 6.6%
Treasuries Trade Sideways as Oil Prices Fall
- U.S. Treasuries took their cue from declining oil prices today to hold their ground despite a steady equity market and a surge in positive sentiment at small U.S. businesses. The benchmark 10-year Treasury note saw its yield rise by just one basis point to 2.38% as WTI crude fell 2.14% to $50.85/bbl., a multi-week low, despite the largest ever jump in the NFIB's Small Business Optimism Index. Wholesale inventories reportedly rose slightly more than expected in November and JOLTS data showed that job openings remained high during that month. The $24 bln 3-year Treasury auction was met with a very warm reception although the results failed to generate much buying interest in the front end and belly of the yield curve. The S&P 500 is now up 0.07% to 2,270.6 and the U.S. Dollar Index is adding 0.08% at 102.01
- Yield Check:
- 2-yr: unch at 1.19%
- 5-yr: unch at 1.88%
- 10-yr: +1 bp to 2.38%
- 30-yr: +1 bp to 2.97%
- News:
- Richmond Fed President Jeffrey Lacker (non-FOMC voter) will step down from his role on October 1. The Richmond Fed has already assembled a committee to find a replacement. The head of the Richmond Fed will vote again on the FOMC in 2018
- In the U.S., small business optimism jumped by the most in the history of the survey according to the National Federation of Independent Business's Small Business Optimism Index
- The December reading was 105.8, up from 98.4 in November
- U.S. job openings rose to 5.522 million in November from 5.451 million in October, according to JOLTS data
- The quits rate was 2.1%, where it has remained for the past six months
- The hiring rate was 3.6%
- U.S. wholesale inventories rose 1.0% m/m in November, beating the Briefing.com consensus of 0.9%, after declining 0.1% in October
- Wholesale trade sales were up 0.40% m/m in November, slightly short of estimates and slower than October's 1.1% growth
- Standard & Poor's said today that sovereign credit ratings are likely to worsen this year after the ratings agency downgraded three times as many countries in 2016 as it upgraded
- $24 bln 3-year Treasury auction results (12-auction averages in parentheses)
- High yield: 1.472% (0.987%)
- Bid-to-cover: 2.97 (2.79)
- Indirect bid: 54.6% (50.8%)
- Direct bid: 6.6% (10.3%)
- Commodities:
- WTI crude: -2.14% to $50.85/bbl.
- Gold: +0.19% to $1,187.1/troy oz.
- Copper: +2.9% to 2.61/lb.
- Currencies:
- EUR/USD: -0.30% to 1.0559
- USD/JPY: -0.24% to 115.73
- Data out Wednesday:
- MBA Mortgage Index for the week ending 1/7 (07:00 ET)
- Crude Inventories for the week ending 1/7 (10:30 ET)
- Treasury Auction:
- $20 bln 10-year Treasury reopening (results at 13:00 ET)
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Preview: Wednesday, 11 January 2017
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jan 11 | 07:00 | MBA Mortgage Applications Index | 01/06 | NA | NA | 0.1% | ||
| Jan 11 | 10:30 | Crude Inventories | 01/06 | NA | NA | -7.100M |
Commentary
Market Internals are still mixed with no clear direction.
Direction for Wednesday, 11 January 2017: UP
Daily Accuracy: 3/5 60%
Direction for Wednesday, 11 January 2017: UP
Daily Accuracy: 3/5 60%
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