Closing Stock Market SummaryThe stock market closed out the first full week of August on a mixed note in a lightly traded session. Market rates jumped in response to a hotter than expected PPI report for July, which created an excuse for investors to continue consolidation efforts that started this month following the stellar start to the year.
Total PPI increased 0.3% month-over-month in July (Briefing.com consensus +0.2%) following a downwardly revised 0.0% (from 0.1%) for June. Excluding food and energy, the index for final demand was also up 0.3% month-over-month (Briefing.com consensus +0.2%) following a downwardly revised 0.1% decline (from +0.1%) for June.
On a year-over-year basis, the index for final demand was up 0.8%, versus 0.3% in June, and the index for final demand, excluding food and energy, was up 2.4%, unchanged from June.
The 2-yr note yield, at 4.80% just before the release, rose six basis points to 4.89%. The 10-yr note yield, at 4.08% just before the release, rose nine basis points to 4.17%.
Weak mega cap stocks acted as a drag on the major indices, leading the S&P 500 and Nasdaq to close with losses while the Dow Jones Industrial Average registered a gain. The Vanguard Mega Cap Growth ETF (MGK) fell 0.6% while the Invesco S&P 500 Equal Weight ETF (RSP) closed flat.
Apple (APPL 177.79, +0.06, +0.03%) eked out a slim gain, but weakness from the likes of Tesla (TSLA 242.65, -2.69, -1.1%), Meta Platforms (META 301.70, -4.04, -1.3%), and NVIDIA (NVDA 408.55, -15.33, -3.6%) kept the broader market in check.
The S&P 500 declined 0.1%; the Nasdaq Composite fell 0.7%; and the Dow Jones Industrial Average rose 0.3%. Market breadth also reflected mixed action under the index surface. Advancers led decliners by a slim margin at the NYSE while decliners led advancers by a 4-to-3 margin at the Nasdaq.
Only four of the 11 S&P 500 sectors closed with a loss. Information technology (-0.9%) was the worst performer by a decent margin while energy (+1.6%) led the pack.
- Nasdaq Composite: +30.4% YTD
- S&P 500: +16.3% YTD
- S&P Midcap 400: +9.5% YTD
- Russell 2000: +9.3% YTD
- Dow Jones Industrial Average: +6.3% YTD
Reviewing today's economic data:
- July PPI 0.3% (consensus 0.2%); Prior was revised to 0.0% from 0.1%; July Core PPI 0.3% (consensus 0.2%); Prior was revised to -0.1% from 0.1%
- The key takeaway from the report is that wholesale inflation has come down sharply from its peak in 2022, although with the recent increase in oil and gasoline prices, there will be some concern that further improvement is going to be delayed.
- August Univ. of Michigan Consumer Sentiment - Prelim 71.2 (consensus 70.9); Prior 71.6
- The key takeaway from the report is that it reflected little overall change in sentiment, due in part to largely steady inflation expectations, as year-ahead and five-year expectations decreased by ten basis points apiece.
There is no U.S. economic data of note on Monday.