Closing Stock Market Summary
The stock market closed this quarterly options expiration day on a downbeat note on above-average volume at the NYSE. The Dow Jones Industrial Average (-0.5%), the S&P 500 (-0.6%), and the Nasdaq Composite (-1.0%) closed with losses, but off their lows of the day.
Selling activity was partially related to some normal consolidation efforts that left many stocks lower. The equal-weighted S&P 500 declined 0.2% and 23 of the 30 Dow components closed lower. Still, the market was showing signs of resilience to selling efforts, true to 2024 form.
The A-D line didn't show a strong bias toward either side of the tape. In fact, advancers had a fractional lead over decliners at both the NYSE and at the Nasdaq.
Also, the Russell 2000 outperformed, gaining 0.4% thanks to strength in its energy stocks and regional bank names. This strength also left the S&P 500 energy sector higher by 0.2% and the SPDR S&P Regional Banking ETF (KRE) with a 0.5% gain.
Aside from energy, the utilities (+0.1%), materials (+0.1%), and industrials (+0.1%) sectors settled higher while the remaining seven sectors logged declines. Relative weakness in the mega cap space drove the information technology (-1.3%), communication services (-1.2%), and consumer discretionary (-1.1%) sectors to last place on the leaderboard.
Sharp earnings-related declines in Jabil (JBL 123.15, -24.31, -16.5%) and Adobe (ADBE 492.46, -77.99, -13.7%) also contributed to the info tech sector's underperformance.
The price action in Treasuries also contributed to the negative bias in the stock market. The 2-yr note yield rose three basis points to 4.72% and the 10-yr note yield settled one basis point higher at 4.30%.
- S&P 500: +7.3% YTD
- Nasdaq Composite: +6.4% YTD
- S&P Midcap 400: +5.1% YTD
- Dow Jones Industrial Average: +2.7% YTD
- Russell 2000: +0.6% YTD
Reviewing today's economic data:
- February Import Prices 0.3%; Prior 0.8%
- February Import Prices ex-oil 0.2%; Prior 0.7%
- February Export Prices 0.8%; Prior was revised to 0.9% from 0.8%
- February Export Prices ex-ag. 0.8%; Prior was revised to 1.1% from 0.9%
- March NY Fed Empire Manufacturing Index -20.9 (consensus -8.0); Prior -2.4
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February Industrial Production 0.1% ( consensus 0.0%); Prior was revised to -0.5% from -0.1%; February Capacity Utilization 78.3% (consensus 78.4%); Prior was revised to 78.3% from 78.5%
- The key takeaway from the report is that manufacturing output improved notably in February, reversing some of its decrease that was recorded in January, though even with the February rebound, manufacturing output remains down 0.7% yr/yr.
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March Univ. of Michigan Consumer Sentiment - Prelim 76.5 (consensus 77.3); Prior 76.9
- The key takeaway from the report is that overall sentiment has shown little change so far in 2024 and it remains halfway between the low reached in June 2022 and pre-pandemic highs.
Looking ahead, Monday's economic data is limited to the March NAHB Housing Market Index ( consensus 49; prior 48) at 10:00 ET.