Closing Stock Market SummaryToday's trade had a positive bias that left the major indices with modest gains, snapping a three-session losing streak. The market was stuck in a narrow range as participants await Fed Chair Powell's speech at the Jackson Hole symposium on Friday. Rising Treasury yields and oil prices acted as a limiting factor.
Notwithstanding the modest gains, buying interest was relatively broad-based. Advancers lead decliners by a 5-to-3 margin at the NYSE and a 14-to-9 margin at the Nasdaq.
All 11 S&P 500 sectors closed in the green with gains ranging from +0.04% (information technology) to 1.2% (energy).
The mega caps stocks edged ahead of the broader market with the broader market and growth stocks edged ahead of value stocks. The Vanguard Mega Cap Growth ETF (MGK) closed up 0.4% versus a 0.3% gain in the S&P 500. The Russell 3000 Growth Index was up 0.5% and the Russell 3000 Value Index was up 0.3%.
Small cap and mid cap stocks stood out as the Russell 2000 (+0.8%) and S&P Mid Cap 400 (+0.5%) closed ahead of their peers.
On an individual basis, Nordstrom (JWN 18.57, -4.63, -19.96%) and Intuit (INTU 465.77, +16.21, +3.6%) were notable standouts after the companies reported quarterly results. Both names beat top line estimates but the former cut its full-year guidance while the latter issued pleasing full-year guidance.
WTI crude oil futures had a volatile session and settled up 1.1% at $94.83/bbl. This propelled the energy sector (+1.2%) to first place on the day. Natural gas futures rose 0.1% to $9.26/mmbtu.
Separately, President Biden announced a plan to forgive up to $10,000 in federal student loan debt for borrowers earning less than $125,000 per year (or less than $250,000 per year for married couples filing jointly).
Hawkish Fed speak drove Treasury yields higher today. Minneapolis Fed President Neel Kashkari (2023 FOMC voter) said he thinks the Fed needs to remain vigilant with tightening efforts, lest it run a risk of inflation expectations becoming unanchored, according to The Wall Street Journal. The 2-yr note yield rose nine basis points to 3.37% while the 10-yr note yield rose five basis points to 3.11%.
Ahead of Thursday's open Abercrombie & Fitch (ANF), Dollar General (DG), Dollar Tree (DLTR), and Peloton (PTON) all report earnings.
Looking ahead to Thursday, market participants will receive the Q2 GDP second estimate (Briefing.com consensus -0.9%; prior -0.9%), Q2 GDP Deflator second estimate (Briefing.com consensus 8.7%; prior 8.7%), weekly Initial Claims (Briefing.com consensus 253,000; prior 250,000), and Continuing Claims (prior 1.437 mln) at 8:30 am. ET. Weekly natural gas inventories (prior +18 bcf) are out at 10:30 a.m. ET.
Reviewing today's economic data:
- Weekly MBA Mortgage Applications Index -1.2%; Prior -2.3%
- July Durable Orders 0.0% (consensus 0.6%); Prior was revised to 2.2% from 1.9%; July Durable Orders, Ex-Transportation 0.3% (consensus 0.1%); Prior 0.3%
- The key takeaway from the report is that business spending continued to increase, evidenced by the 0.4% increase in nondefense capital goods orders excluding aircraft, which followed increases of 0.9% in June and 0.5% in May.
- July Pending Home Sales -1.0% (Briefing.com consensus -3.0%); Prior was revised to -8.9% from -8.6%
Dow Jones Industrial Average: -9.3% YTD
S&P 400: -10.2% YTD
S&P 500: -13.1% YTD
Russell 2000: -13.8% YTD
Nasdaq Composite: -20.5% YTD