Closing Stock Market SummaryFollow-through selling interest sent the stock market sliding at the open before the S&P 500 flirted with Friday's low (3,837) and found support there. The main indices danced around the unchanged mark for most of the afternoon before catching a bid in the final hour of trade, helped primarily by an uptick in the mega cap stocks and other issues. The S&P 500 broke out of a narrow trading range but found resistance at the 3,900 level, closing a whisker shy of that important level.
There was some hesitation in play ahead of the September 20-21 FOMC meeting and subsequent rate hike decision. In addition, rising Treasury yields were a focal point that pressured stocks early. However, stocks rebounded as Treasury yields fell back from their highest levels of the morning.
The 2-yr and 10-yr note yields reached their highest levels since 2007 and 2011, respectively. The 2-yr note yield reached 3.97% before settling at 3.94% and the 10-yr note yield reached 3.51% before settling at 3.49%.
The major averages squeezed out decent gains by the close, but market breadth still painted a mixed picture. Decliners outpaced advancers by a 4-to-3 margin at the Nasdaq while advancers led decliners by a roughly 3-to-2 margin at the NYSE.
Only two S&P 500 sectors closed with a loss, health care (-0.5%) and real estate (-0.2%). The gainers were led by materials (+1.6%) and consumer discretionary (+1.3%).
Consumer discretionary was boosted by its homebuilder components after KeyBanc upgraded a number of individual names today. The SPDR S&P Homebuilder ETF (XHB) closed up 1.8% and the iShares U.S. Home Construction ETF (ITB) closed up 2.3%. This came as participants awaited the August Housing Starts and Building Permits report tomorrow at 8:30 a.m. ET, and followed the NAHB Housing Market Index release today.
Energy complex futures settled in a mixed fashion with WTI crude oil futures falling 0.5% to $84.96/bbl while natural gas futures rose 0.1% to $7.81/mmbtu.
Today's economic data was limited to the September NAHB Housing Market Index, which came in at 46 (consensus 48) after the prior reading of 49. A number below 50 for this report is indicative of declining confidence.
Looking ahead to Tuesday, market participants will receive the August Housing Starts (consensus 1.448 million; prior 1.446 million) and Building Permits report (consensus 1.610 million; prior 1.674 million) at 8:30 a.m. ET.
Dow Jones Industrial Average: -14.6% YTD
S&P 400: -15.2% YTD
S&P 500: -18.2% YTD
Russell 2000: -19.3% YTD
Nasdaq Composite: -26.3% YTD