Closing Stock Market SummaryThe stock market opened decidedly higher, attempting to build on Friday's gains. The early upward momentum in the S&P 500 found some resistance around the 3,900 mark. The release of the July NAHB Housing Market Index at 10:00 a.m. ET took the steam out of the broader market. After that, the market held onto modest gains and moved mostly sideways until a Bloomberg article suggested Apple (AAPL 147.07, -3.10, -2.1%) plans to slow hiring and spending for some divisions next year to ease the impact of the economic downturn. The market sold off on the news and closed barely above session lows.
The early buying conviction was fueled by a general rebound attempt as well as positive corporate news from Goldman Sachs (GS 301.26, +7.39, +2.5%) and Boeing (BA 147.72, -0.02, -0.01%). Goldman Sachs reported better-than-expected earnings and approved a 25% increase in its quarterly dividend. Boeing traded up on news that Delta Air Lines (DAL 31.14, +1.05, +3.5%) will modernize its single-aisle fleet with up to 130 Boeing 737 MAX jets.
Also adding to the early sentiment was a Wall Street Journal article that noted the Fed is likely to hike 75 basis points at its next meeting, versus a feared 100 basis point rate hike.
The market started its deterioration today after the July NAHB Housing Market Index release came in at 55. The drop from 67 to 55 was the largest monthly drop in the 37-year series other than the drop seen in April 2020.
Each of the main indices was able to keep above the unchanged mark until a Bloomberg report suggested Apple plans to slow hiring and spending for some divisions, which let the rest of the air out of the market. With a lack of leadership, just about everything slumped into the close.
Eight of the 11 S&P 500 sectors closed in the red with losses ranging from 0.5% (financials) to 2.2% (health care). The only sectors to gain on the day were energy (+2.0%), materials (+0.2%), and consumer discretionary (+0.2%).
Market breadth was mixed with advancers slightly outpacing decliners at the NYSE and decliners slightly outpacing advancers at the Nasdaq.
The 2-yr Treasury note yield closed the session three basis points higher at 3.16% and the 10-yr note yield rose three basis points to 2.96%.
Tomorrow's economic data will be limited to June Housing Starts (Briefing.com consensus 1.598 million; prior 1.549 million) and Building Permits (Briefing.com consensus 1.680 million; prior 1.695 million) at 8:30 a.m. ET.
Ahead of tomorrow's open, the earnings reports will be headlined by Johnson & Johnson (JNJ 174.23, -4.00, -2.2%), Lockheed Martin (LMT 387.28, -11.10, -2.8%), Halliburton (HAL 28.85, +0.99, +3.6%), and Hasbro (HAS 79.42, +0.21, +0.3%).
- Dow Jones Industrial Average: -14.5% YTD
- S&P 400: -19.1% YTD
- S&P 500: -19.6% YTD
- Russell 2000: -22.5% YTD
- Nasdaq Composite: -27.4% YTD