Closing Market Summary: Energy Sector Leads Stocks LowerThe stock market began the abbreviated trading week on a lower note with the S&P 500 surrendering 0.2%; however, Monday's participation left a lot to be desired considering fewer than 600 million shares changed hands at the NYSE floor.
Equity indices stumbled out of the gate with the energy sector (-1.8%) leading the opening slide. The growth-sensitive sector responded to a nightlong retreat in crude oil, which settled lower by 3.3% at $36.86/bbl. The energy component saw additional selling pressure after China reported its sixth consecutive monthly decline in industrial profits (-1.4% in November).
The disappointing data from China cast a pall on the overall risk sentiment and a 2.6% decline in the Shanghai Composite certainly did not help matters. Interestingly, the index held its ground through the first half of the session, but plunged in afternoon trade.
The situation was a bit different in the U.S. as stocks stumbled out of the gate, spending the afternoon in a slow rally off late-morning lows. Two sectors—consumer discretionary (+0.3%) and utilities (+0.2%)—eked out slim gains while the remaining eight groups registered losses. Slow was the operative word as light trading volume made for a quiet trading day and thin trading conditions are expected to persist throughout the week.
The energy sector (-1.8%) spent the day behind its peers, which kept the market on the defensive despite flashes of relative strength in a few other areas. For instance, the consumer discretionary sector (+0.3%) settled just above its flat line with Amazon (AMZN 675.25, +12.46) and Disney (DIS 107.25, +1.39) underpinning the modest advance. Amazon rallied in reaction to upbeat holiday shopping data while Dow component Disney benefited from a strong weekend at the box office for the latest installment of the Star Wars series.
Elsewhere, the top-weighted technology sector (-0.1%) also finished ahead of the broader market, but Apple (AAPL 106.82, -1.21) surrendered 1.1%, returning into the neighborhood of its December low. High-beta chipmakers also struggled with the PHLX Semiconductor Index falling 0.4%.
Unlike stocks, Treasuries climbed in the morning and maintained slim gains into the close with the 10-yr yield falling one basis point to 2.23%.
Investors did not receive any economic data today, but tomorrow, the October Case-Shiller 20-city Index (consensus 5.4%) and December Consumer Confidence (consensus 93.5) will be reported at 9:00 ET and 10:00 ET, respectively.
- Nasdaq Composite +6.4% YTD
- S&P 500 -0.1% YTD
- Dow Jones Industrial Average -1.7% YTD
- Russell 2000 -4.7% YTD