Closing Stock Market Summary
There was not a lot of conviction on either side of the tape today. Market breadth was negative, but modestly so, and volume was below-average at the NYSE. The Dow Jones Industrial Average closed with a 0.4% gain while the S&P 500 (-0.1%) and Nasdaq Composite (-0.8%) closed with losses.
Relative weakness in mega cap and semiconductor-related stocks weighed on the S&P 500 and Nasdaq Composite as participants waited on earnings results from influential names in both spaces this afternoon. The Vanguard Mega Cap Growth ETF (MGK) logged a 0.6% decline and the PHLX Semiconductor Index (SOX) fell 1.6%.
The Invesco S&P 500 Equal Weight ETF (RSP), though, settled just above yesterday's closing level.
Outsized moves in either direction were limited to stocks that reported quarterly results since yesterday's close, which contributed to the mixed feeling at the index level. General Motors (GM 38.15, +2.76, +7.8%) and HCA Healthcare (HCA 301.59, +14.86, +5.2%) logged big gains following pleasing earnings and/or guidance while shares of UPS (UPS 145.06, -12.96, -8.2%) and Whirlpool (WHR 110.01, -7.78, -6.6%) sank following their results.
The mixed action was also the result of a wait-and-see mentality in front of the FOMC decision tomorrow, which is followed by Fed Chair Powell's press conference. The market expects that the committee will leave rates unchanged, but participants are anxious to hear any tonal shifts in rhetoric.
Also, this morning's economic data bodes well for the market's soft landing narrative. The January Consumer Confidence Index climbed to 114.8 in January (consensus 113.0) from a downwardly revised 108.0 (from 110.7) in December. Meanwhile, the JOLTS Report showed 9.026 million job openings in December, up from 8.925 million in November.
The Treasury market also saw mixed action today. The 2-yr note yield, which was at 4.30% before the 10:00 ET data, peaked at 4.37% today before settling at 4.36%. The 10-yr note yield, at 4.04% before the reports, peaked at 4.10% before settling at 4.06%.
- Nasdaq Composite: +3.3%
- S&P 500: +3.3%
- Dow Jones Industrial Average: +2.1%
- S&P Midcap 400: +0.1%
- Russell 2000: -1.5%
Reviewing today's economic data:
- November FHFA Housing Price Index 0.3%; Prior 0.3%
- November S&P Case-Shiller Home Price Index 5.4% (consensus 5.6%); Prior 4.9%
- January Consumer Confidence 114.8 (consensus 113.0); Prior was revised to 108.0 from 110.7
- The key takeaway from the report is that the uptick in confidence was seen across all age groups and fueled by factors that should support continued strength in consumer spending: slower inflation, expectations interest rates will continue to come down, and favorable employment conditions.
- December JOLTS - Job Openings 9.026 mln; Prior was revised to 8.925 mln from 8.790 mln
Wednesday's economic calendar features:
- 7:00 ET: Weekly MBA Mortgage Index (prior 3.7%)
- 8:15 ET: January ADP Employment Change (consensus 140,000; prior 164,000)
- 8:30 ET: Q4 Employment Cost Index (consensus 1.0%; prior 1.1%)
- 9:45 ET: January Chicago PMI ( consensus 48.4; prior 46.9)
- 10:30 ET: Weekly crude oil inventories (prior -9.23 mln)
- 14:00 ET: January FOMC Decision ( consensus 5.25-5.50%; prior 5.25-5.50%)