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End of Day Brief - Thursday Sept 16 - Up and down day ends mixed

SP 5004473.75-6.95(-0.16%)
10-yr Note -5/321.349
NYSEAdv 1488 Dec 1756 Vol 928.6 mln
NasdaqAdv 2215 Dec 2045 Vol 3.6 bln

Industry Watch

Strong: Consumer Discretionary, Information Technology, Real Estate
Weak: Energy, Materials, Consumer Staples

Moving the Market

-- Nasdaq ekes out gain in rollercoaster session

-- Retail sales data for August surprised to the upside

-- S&P 500 respects 50-day moving average (4434) for third straight day

Up and down day - Ends mixed

Dow -63.07 at 34751.32, Nasdaq +20.39 at 15181.92, S&P -6.95 at 4473.75

[BRIEFING.COM] Each of the major indices was down as much as 0.8% on Thursday despite some upbeat economic data, but they closed well off session lows with the help of technical factors. The Nasdaq Composite (+0.1%) eked out a gain, while the S&P 500 (-0.2%), Dow Jones Industrial Average (-0.2%), and Russell 2000 (-0.1%) closed slightly lower.

Briefly, total retail sales surprisingly increased 0.7% m/m in August ( consensus -0.7%), the September Philadelphia Fed Index was much better than expected with a reading of 30.7 ( consensus 19.6), and the 4-week moving average for both initial claims and continuing claims continued to decrease.

Instead of taking the news in stride, the market went south after the open, exacerbating qualms about the uneven price action this month and reminding others about a litany of growth-related concerns. Selling interest abated after the S&P 500 approached -- but stayed above -- its 50-day moving average (4434) for the third straight day.

The S&P 500 consumer discretionary sector (+0.4%) was today's best-performing sector, drawing support from the retail sales report, but the sector only increased by 0.4%. Eight of the 11 S&P 500 sectors closed lower, with the energy (-1.1%) and materials (-1.1%) sectors losing more than 1.0%.

In corporate news, well-known issues about chip shortages and materials inflation were highlighted by Timken ($TKR 68.02, -2.40, -3.4%). The company withdrew its full-year guidance and said it expects lower sales and earnings for the second half of the year versus prior expectations.

Separately, DoorDash ($DASH 221.50, +11.65, +5.6%) and Avis Budget ($CAR 98.79, +8.79, +9.8%) both received analyst upgrades to Buy from Neutral at BofA Securities. Avis Budget helped contribute to the outperformance of the Dow Jones Transportation Average (+0.3%) along with the airlines. The U.S. Global Jets ETF ($JETS 22.69, +0.23) rose 1.0%.

Elsewhere, the Treasury market softened up in a typical move when the economic data leans positive. The 2-yr yield increased one basis point to 0.22%, and the 10-yr yield increased three basis points to 1.33%. The U.S. Dollar Index increased 0.3% to 92.86. WTI crude futures ($72.62, +0.10, +0.1%) were little changed.

As an aside, trading volume at the Nasdaq was relatively light compared to recent days, which was likely due to Yom Kippur -- the holiest day on the Jewish calendar.

Reviewing Thursday's economic data:

  • Total retail sales increased 0.7% month-over-month ( consensus -0.7%) following a downwardly revised 1.8% decline (from -1.1%) in July. Excluding autos, retail sales jumped 1.8% ( consensus -0.2%) after declining a downwardly revised 1.0% (from -0.4%) in July.
    • The key takeaway from the report is that retail sales bounced back nicely in August in most categories. Some notable exceptions were motor vehicles and parts dealers (-3.6%), electronics and appliance stores (-3.1%), and food services and drinking places (unchanged). Nonstore retailer sales surged 5.3% following a 4.6% decline in July.
  • Initial claims for the week ending September 11 increased by 20,000 to 332,000 ( consensus 318,000). Continuing claims for the week ending September 4 decreased by 187,000 to 2.665 million.
    • The key takeaway from the report is that it didn't disrupt the improving trend in jobless claims data, which is evidenced in the decrease in the 4-week moving average for both initial claims and continuing claims.
  • The Philadelphia Fed Index for September increased to 30.7 ( consensus 19.6) from 19.4 in August.
  • Business inventories increased 0.5% m/m in July ( consensus 0.5%) following an upwardly revised 0.9% increase (from 0.8%) in June.

Looking ahead, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for September on Friday.

  • S&P 500 +19.1% YTD
  • Nasdaq Composite +17.8% YTD
  • Dow Jones Industrial Average +13.5% YTD
  • Russell 2000 +13.1% YTD

Source: (

Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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