Closing Stock Market Summary
The S&P 500 broke a five-day losing streak and closed above its 200-day moving average (4,236). All the major indices closed with gains, albeit off their highs, driven by broad based buying. Stocks hit an air pocket, though, around 11:00 a.m. ET and pulled back to session lows.
There was no specific catalyst to account for the mid-morning pullback that coincided with some mega caps dipping into negative territory. The Vanguard Mega Cap Growth ETF (MGK) was down fractionally at its low of the day, but closed with a 0.9% gain.
Many other stocks bounced back alongside mega caps. The Invesco S&P 500 Equal Weight ETF (RSP) closed with a 0.6% gain.
The overall positive bias was partially a function of recent weakness stirring a rebound mentality.
Participants were also digesting a slate of mostly better-than-expected earnings results from blue chip names. Verizon (VZ 34.30, +2.91, +9.3%), Coca-Cola (KO 55.64, +1.56, +2.9%), Dow (DOW 49.24, +1.00, +2.1%), RTX (RTX 78.38, +2.25, +7.2%), General Electric (GE 113.62, +6.93, +6.5%), and 3M (MMM 90.12, +4.52, +5.3%) were among the top performers in that respect.
Ten of the 11 S&P 500 sectors closed with a gain while the energy sector (-1.4%) settled in negative territory. The utilities (+2.8%) and communication services (+1.4%) sectors led the pack.
Bank stocks were a pocket of weakness today related to lingering concerns about credit quality, deposit costs, and weakening loan demand. The SPDR S&P Regional Banking ETF (KRE) fell 0.6% and the SPDR S&P Bank ETF (KBE) fell 0.2%.
The 10-yr note yield settled unchanged from yesterday at 4.84%. The 2-yr note yield rose four basis points to 5.10% following a $51 billion 2-yr note auction that was met with solid demand.
Today's economic data was limited to the preliminary October S&P Global US Services PMI, which climbed to 50.9 from 50.1, and Manufacturing PMI, which rose to 50.0 from 49.8.
- Nasdaq Composite: +25.5% YTD
- S&P 500: +10.6% YTD
- Dow Jones Industrial Average: UNCH YTD
- S&P Midcap 400: -1.9% YTD
- Russell 2000: -4.6% YTD
Looking ahead to Wednesday, participants will receive the following economic data:
- 7:00 ET: Weekly MBA Mortgage Index (prior -6.9%)
- 10:00 ET: September New Home Sales (consensus 683,000; prior 675,000)
- 10:30 ET: Weekly crude oil inventories (prior -4.49 mln)