Closing Stock Market SummaryToday's trade started on a more upbeat note. The main indices enjoyed a positive standing in the early going, supported by gains in some mega cap stocks. Apple (AAPL 153.83, +2.80, +1.9%) led the charge in that respect after Goldman Sachs initiated coverage with a Buy rating and a $199 price target.
Things were more shaky under the surface, though, as investors played a waiting game ahead of key events later this week, including Fed Chair Powell's monetary policy testimony before Senate and House committees on Tuesday and Wednesday, respectively, followed by the February Employment Report on Friday.
Even at midday, when the main indices traded near their best levels of the day, decliners led advancers by a 4-to-3 margin at the NYSE and a 5-to-3 margin at the Nasdaq.
Underlying weakness became more apparent as mega cap strength started to fade. This coincided with selling efforts ramping up in the Treasury market. The 2-yr note yield, which stood at 4.83% before the stock market opened, rose five basis points to 4.91%. The 10-yr note yield, which stood at 3.90% before the stock market opened, rose two basis points to 3.98%.
The main indices spent most of the afternoon in a slow grind lower, ultimately settling near their lows for the day. At the close, decliners led advancers by a roughly 2-to-1 margin at both the NYSE and the Nasdaq.
Roughly half of the 11 S&P 500 sectors closed with a gain, but moves in either direction were modest in scope. The only sector to move more than 1.0% was materials (-1.7%), reflecting potential concerns about China providing a 2023 growth forecast of around 5.0% that was more conservative than expected. On the flip side, gains in Apple propelled information technology (+0.5%) to the top spot on the leaderboard.
Separately, small cap and mid cap stocks underperformed by a notable margin today presumably on concerns about the U.S. economy weakening in the months ahead as the Fed continues to raise rates. The Russell 2000 fell 1.5% and the S&P Mid Cap 400 dropped 1.2%.
- Nasdaq Composite: +11.6% YTD
- Russell 2000: +7.9% YTD
- S&P Midcap 400: +7.9% YTD
- S&P 500: +5.4% YTD
- Dow Jones Industrial Average: +0.9% YTD
Today's economic data was limited to the January Factory Orders, which declined 1.6% month-over-month in January (consensus -1.8%) following a downwardly revised 1.7% increase (from 1.8%) in December. Shipments of manufactured goods increased 0.7% month-over-month after declining 0.6% in December.
- The key takeaway from the report was the strength (and rebound) seen in nondefense capital goods orders, excluding aircraft. Shipments of these same goods, which factor into GDP forecasts, were up 1.1% after declining 0.6% in December.
Market participants will receive the following economic data tomorrow:
- 10:00 ET: January Wholesale Inventories (consensus -0.4%; prior 0.1%)
- 15:00 ET: January Consumer Credit ( consensus $22.90 bln; prior $11.60 bln)