Closing Stock Market SummaryThe stock market closed with losses again today. The major indices had been following a similar form to yesterday's trade and looked poised to close on an upswing after rebounding from their lows. The market turned sharply lower ahead of the close, however, and settled near the worst levels of the day.
On Tuesday, the S&P 500 traded down to 4,464 before reversing and finishing the session at 4,499. Today, the S&P 500 traded down to 4,461 before reversing and stopping short of the 4,500 level, which precipitated the late selling interest. The deterioration was broad and orderly with many stocks participating, but mega cap losses had an outsized impact on index performance.
The Invesco S&P 500 Equal Weight ETF (RSP) was up 0.3% around 3:00 p.m. ET, but closed with a 0.3% loss; the Vanguard Mega Cap Growth ETF (MGK) was down 0.5% around 3:00 p.m. ET, but closed with a 1.1% loss; and the market-cap weighted S&P 500 was down 0.1% around 3:00 p.m. ET, but closed with a 0.7% loss.
The S&P 500 energy sector (+1.2%) was the top performer by a decent margin. The information technology sector (-1.5%), meanwhile, closed with the steepest loss.
Outsized moves were generally been reserved for stocks with news catalysts. Twilio (TWLO 59.69, +1.29, +2.2%), Duolingo (DUOL 144.91, +8.91, +6.6%), and Akamai Tech (AKAM 102.99, +8.04, +8.5%) are standouts after reporting earnings while Penn Entertainment (PENN 27.10, +2.26, +9.1%) struck a 10-year exclusive U.S. online sports betting agreement with ESPN, Inc. and ESPN Enterprises.
Treasuries settled mixed ahead of tomorrow's release of the July Consumer Price Index. The 2-yr note yield rose five basis points to 4.80% and the 10-yr note yield fell one basis point to 4.01%.
- Nasdaq Composite: +31.1% YTD
- S&P 500: +16.4% YTD
- Russell 2000: +9.6% YTD
- S&P Midcap 400: +9.7% YTD
- Dow Jones Industrial Average: +6.0% YTD
Reviewing today's economic data:
- The weekly MBA Mortgage Applications Index declined 3.1% with purchase applications falling 3.0% and refinance applications dropping 4.0%.
- The weekly EIA crude oil inventories showed a build of 5.85 million barrels following last week's draw of 17.1 million barrels.
The economic calendar tomorrow includes:
- 8:30 a.m. ET: July CPI (consensus 0.2%; prior 0.2%) and Core CPI (consensus 0.2%; prior 0.2%); weekly Initial Claims (consensus 230,000; prior 227,000) and Continuing Claims (prior 1.700 mln)
- 10:30 a.m. ET: Weekly natural gas inventories (prior +14 bcf)
- 2:00 p.m. ET: and July Treasury Budget (prior -$227.80 bln)
