Closing Stock Market Summary
Today's trade was mixed. The S&P 500 and Dow Jones Industrial Average each logged a 0.1% gain while the Nasdaq Composite closed 0.1% lower. The Russell 2000 continued its recent outperformance, gaining 0.5%. The major indices all made a sharp turn higher around 3:00 ET with no specific news to account for the move, but ultimately drifted off those levels by the close.
Participation was light in front of the extended holiday weekend, contributing the muted index-level moves. Markets will be closed tomorrow for Good Friday, which makes today the final trading day of the quarter.
Losses in some heavily-weighted names also limited movement at the index level. The Vanguard Mega Cap Growth ETF (MGK) closed with a 0.3% decline. Meta Platforms (META 485.58, -8.28, -1.7%) and Microsoft (MSFT 420.72, -0.71, -0.2%) were among the influential laggards after registering big gains so far this year. META is up 37.2% in the first quarter and MSFT is up 11.9% since the start of the year.
Still, outsized move in either direction were generally reserved for stocks with specific news items driving the moves. Estee Lauder (EL 154.15, +9.11, +6.3%) was a standout, leading the S&P 500 components after an upgrade to Buy from Neutral at BofA Securities.
Dow component Home Depot (HD 383.60, -2.29, -0.6%) didn't log an outsized move today, but there was some news surrounding the stock after announcing an $18.25 billion acquisition of SRS Distribution.
The S&P 500 energy sector registered a 1.0% gain while the remaining ten sectors moved less than 0.8% in either direction.
The 2-yr note yield settled five basis points higher today, and two basis points higher this week, at 4.62%. The 10-yr note yield rose one basis point to 4.20%.
- S&P 500:+10.2% YTD
- S&P Midcap 400: +9.5% YTD
- Nasdaq Composite: +9.1% YTD
- Dow Jones Industrial Average: +5.6% YTD
- Russell 2000: +4.8% YTD
Reviewing today's economic data:
- Weekly Initial Claims 210K (consensus 213K); Prior was revised to 212K from 210K; Weekly Continuing Claims 1.819 mln; Prior was revised to 1.795 mln from 1.807 mln
- The key takeaway from the report is the low (and steady) level of initial jobless claims -- a leading indicator -- that also reinforces the market's belief that employment conditions remain favorable for continued economic growth.
- Q4 GDP - Third Estimate 3.4% (consensus 3.2%); Prior 3.2%; Q4 GDP Deflator - Third Estimate 1.6% (consensus 1.7%); Prior 1.6%
- The key takeaway from the report is that it is dated information and won't have market-moving impact other than to reinforce the market's belief that the economy fared much better than expected in the final quarter of 2023 despite the Fed's prior rate hikes.
- March Chicago PMI 41.4 ( consensus 45.4); Prior 44.0
- March Univ. of Michigan Consumer Sentiment - Final 79.4 (consensus 76.5); Prior 76.5
- The key takeaway from the report is that overall sentiment was improved in March in conjunction with lessening inflation worries and rising stock prices.
- February Pending Home Sales 1.6% (Bconsensus 2.1%); Prior was revised to -4.7% from -4.9%
Bond and equity markets are closed tomorrow for Good Friday, but there is still a slate of economic data to get through. The February Personal Income and Spending report, which features the Fed's preferred inflation gauge in the form of the PCE Price Indexes, will be released at 8:30 ET. Other data include the February advance goods trade deficit, advance Wholesale Inventories, and advance Retail Inventories at 8:30 ET.