Closing Stock Market SummaryThe stock market kicked off this last week of trading for the year in mixed fashion. The Dow Jones Industrial Average was able to squeeze out a slim gain while the S&P 500 and Nasdaq closed in the red, held down by sizable losses registered by mega cap stocks.Tesla (TSLA 109.10, -14.05, -11.4%), Apple (AAPL 130.03, -1.83, -1.4%), and NVIDIA (NVDA 141.21, -10.85, -7.1%) were among the more influential laggards, driving a 1.3% loss in the Vanguard Mega Cap Growth ETF (MGK). Apple fell to a new 52-week low while Tesla sold off, again, on news that production has been suspended at the company's Shanghai plant, which a company spokesman has denied. The fact that TSLA still struggled despite the denial underscores that investors have other worries on their minds like increased competition, weakening demand, and Elon Musk's Twitter distraction.
Losses in the mega cap space, however, seemingly turned into gains for other stocks. To that end, the Invesco S&P 500 Equal Weight ETF (RSP) closed up 0.1%.
Growth stocks were noticeably weak compared to value stocks. The Russell 3000 Growth Index sported a 1.0% loss versus a 0.1% gain in the Russell 3000 Value Index.
Most of the 11 S&P 500 sectors closed in the red. The heavily weighted consumer discretionary (-1.6%), communication services (-1.2%), and information technology (-1.0%) sectors were buried at the bottom of the pack, falling under the weight of their respective mega cap components. Meanwhile, the energy sector (+1.1%) closed at the top of the leaderboard.
The industrials sector (+0.3%) was among the outperformers today despite a sizable loss in Southwest Air (LUV 33.94, -2.15, -6.0%) after the airline canceled thousands of flights due to the winter storm.
Chinese stocks and U.S. stocks with high exposure to the Chinese market were a distinct pocket of strength today. This followed reports China, starting January 8, will end quarantine requirements for international travelers. Wynn Resorts (WYNN 84.33, +3.61, +4.5%), Alibaba (BABA 89.86, +4.21, +4.9%), and Baidu (BIDU 116.48, +4.87, +4.4%) were winning standouts for the group.
Treasury yields climbed noticeably higher today. The 2-yr note yield rose 12 basis points to 4.43% and the 10-yr note yield rose 11 basis points to 3.86%.
- Dow Jones Industrial Average: -8.5% YTD
- S&P Midcap 400: -14.3% YTD
- S&P 500: -19.7% YTD
- Russell 2000: -22.1% YTD
- Nasdaq Composite: -33.8% YTD
Reviewing today's economic data:
- The advanced report for international trade in goods showed an $83.35 billion deficit in November versus a prior revised $98.8 billion deficit in October (-$99.0 billion). The advanced report for retail inventories reflected a 0.1% build in November following a revised 0.4% decline in October (from -0.2%). The advanced report for wholesale inventories showed a 1.0% build in November after a revised 0.6% build in October (from +0.8%).
- FHFA Housing Price Index came in flat for October after a 0.1% increase in September
- S&P Case-Shiller Home Price Index fell to 8.6% (consensus 8.0%) in October from 10.4% in September
Looking ahead to Wednesday, market participants will receive the following economic data:
- 7:00 a.m. ET: Weekly MBA Mortgage Applications Index (prior +0.9%)
- 10:00 a.m. ET: November Pending Home Sales (consensus -0.2%; prior -4.6%)