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End of Day Brief - Wednesday Sept 15 - Markets rebound

SP 5004480.70+37.65(0.85%)
10-yr Note -2/321.315
NYSEAdv 2244 Dec 981 Vol 962.5 mln
NasdaqAdv 2726 Dec 1582 Vol 4.4 bln

Industry Watch

Strong: Energy, Financials, Industrials, Materials
Weak: Utilities

Moving the Market

-- Market rebounds modestly from recent losses

-- Value stocks had the performance edge over growth stocks

-- S&P 500 respects 50-day moving average (4432)

Market rebounds, S&P stays above it's 50-day moving average

Dow +236.82 at 34814.39, Nasdaq +123.77 at 15161.53, S&P +37.65 at 4480.70

[BRIEFING.COM] The stock market had a good day on Wednesday, rebounding modestly from recent losses. The S&P 500 (+0.9%), Nasdaq Composite (+0.8%), and Dow Jones Industrial Average (+0.7%) rose between 0.7-0.9% while the Russell 2000 gained 1.1%.

Value stocks were early leaders, as investors digested upwards momentum in energy prices; a huge upside surprise in the Empire State Manufacturing Survey for September, which checked in at 34.3 ( consensus 18.6); and industrial production data for August that increased in-line with expectations.

The latter was well received because China reported industrial production data for August (along with retail sales and fixed asset investment data) that missed expectations. The gains broadened out to the mega-caps/growth stocks later in the day on no news, helping the S&P 500 distance itself from its 50-day moving average (4432).

Ten of the 11 S&P 500 sectors ended the session in positive territory, led by the cyclical energy (+3.8%), industrials (+1.1%), materials (+1.1%), and financials (+0.9%) sectors. The utilities sector (-0.2%) closed slightly lower.

Microsoft ($MSFT 304.82, +5.03, +1.7%) was a positive force today after the company approved a new $60 billion share repurchase program and raised its dividend by 11%.

Highlighting the developments in the energy space, the EIA reported a larger-than-expected draw in weekly crude inventories (6.42 million), WTI crude futures settled above $72 per barrel ($72.52/bbl, +2.06, +2.9%), and JPMorgan downgraded Chevron ($CVX 98.24, +2.04, +2.1%) to Neutral from Overweight with a $111 price target.

In other corporate news, Goldman Sachs ($GS 401.95, -1.74, -0.4%) augmented its consumer business with an acquisition of GreenSky ($GSKY 11.90, +4.13, +53.2%) for $2.24 billion, or $12.11/SHARE, in stock. Wynn Resorts ($WYNN 86.44, -4.81, -6.3%) fell 6% amid reports that China wants to tighten regulation on the gaming industry in Macao.

Longer-dated Treasury yields finished slightly higher, with selling interest picking up following the release of the industrial production report. The 10-yr yield settled higher by three basis points to 1.30% while the 2-yr yield remained unchanged at 0.21%. The U.S. Dollar Index decreased 0.2% to 92.48.

Reviewing Wednesday's economic data:

  • Total industrial production increased 0.4% in August ( consensus 0.4%) following a downwardly revised 0.8% increase in July (from 0.9%). The capacity utilization rate increased to 76.4% ( consensus 76.3%) from an upwardly revised 76.2% in July (from 76.1%).
    • The key takeaway from the report is that it showed industrial production finally eclipsed its pre-pandemic level; and it also showed industrial production was even stronger in August than meets the eye, registering a gain despite the impact of Hurricane Ida and ongoing semiconductor shortages.
  • The Empire State Manufacturing Survey increased to 34.3 in September ( consensus 18.6) from 18.3 in August.
  • Import prices decreased 0.3% in August after increasing a revised 0.4% (from 0.3%) in July. Excluding oil, import prices decreased 0.1% after increasing a revised 0.1% (from 0.0%) in July.
    Export prices rose 0.4% after increasing a revised 1.1% (from 1.3%) in July. Excluding agriculture, export prices rose 0.2% after increasing a revised 1.4% (from 1.6%) in July.
  • The weekly MBA Mortgage Applications Index increased 0.3% following a 1.9% decline in the prior week.

Looking ahead, investors will receive Retail Sales for August, the weekly Initial and Continuing Claims report, the Philadelphia Fed Index for September, and Business Inventories for July on Thursday.

  • S&P 500 +19.3% YTD
  • Nasdaq Composite +17.6% YTD
  • Dow Jones Industrial Average +13.8% 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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