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End of Day Brief - Wednesday June 23 - Markets mixed, Nasdaq new high

SP 5004241.84-4.60(-0.11%)
10-yr Note -2/321.489
NYSEAdv 1697 Dec 1526 Vol 823.5 mln
NasdaqAdv 2419 Dec 1761 Vol 4.3 bln

Industry Watch

Strong: Energy, Consumer Discretionary, Financials
Weak: Utilities, Consumer Staples, Health Care, Materials

Moving the Market

-- Nasdaq closed at another record high while the S&P 500 came within one point of its all-time high

-- Relatively light trading volume at the NYSE on this slow summer day

-- Weaker-than-expected new home sales for May

Nasdaq closes at another record high in mixed session

Dow -71.34 at 33874.24, Nasdaq +18.46 at 14271.73, S&P -4.60 at 4241.84

[BRIEFING.COM] The S&P 500 decreased 0.1% on Wednesday, and came within one point of its all-time high (4257.16), while the Nasdaq Composite (+0.1%) eked out intraday and closing record highs. The Russell 2000 (+0.3%) sided with the Nasdaq in positive territory while the Dow Jones Industrial Average (-0.2%) closed slightly lower.

Overall price action was tight ranged, and trading volume was relatively light at the NYSE on this slow summer day. Eight of the 11 S&P 500 sectors closed lower, although advancing issues did outnumber declining issues at both the NYSE and Nasdaq.

The utilities sector (-1.1%) lagged with a 1% decline while the consumer discretionary (+0.6%), energy (+0.3%), and financials (+0.3%) sectors padded their weekly gains. Tesla ($TSLA 656.57, +32.86, +5.3%) was a driving force behind the consumer discretionary sector on no specific news catalyst.

As for the broader market, there might have a lingering appreciation that Fed Chair Powell told lawmakers yesterday that the Fed isn't going to raise rates preemptively in response to fears of inflation. On a related note, Treasury Secretary Yellen and Atlanta Fed President Bostic (FOMC voter) separately echoed Fed Chair Powell's view that factors contributing to increased levels of inflation are temporary.

Economic data was mixed, providing fodder for the bulls and bears on Wall Street. Briefly, preliminary data for June out of IHS Markit showed slower growth in the services sector while manufacturing activity increased modestly. New home sales declined 5.9% m/m in May to a seasonally adjusted annual rate of 769,000 ( consensus 873,000).

Shares of Comcast ($CMCSA 55.48, -2.15, -3.7%) fell nearly 4.0% after The Wall Street Journal published a report speculating the company could potentially be interested in merging with ViacomCBS ($VIAC 41.84, +1.09, +2.7%) or acquiring Roku ($ROKU 421.70, +18.20, +4.5%). Comcast dismissed the report, though.

U.S. Treasury yields settled slightly higher. The 2-yr yield increased one basis point to 0.24%, and the 10-yr yield increased two basis points to 1.49%. The U.S. Dollar Index increased 0.1% to 91.83. WTI crude futures settled unchanged at $73.09/BBL after briefly topping $74/BBL intraday.

Reviewing Wednesday's economic data:

  • New home sales declined 5.9% month-over-month in May to a seasonally adjusted annual rate of 769,000 ( consensus 873,000) from a downwardly revised 817,000 (from 975,000) in April. On a yr/yr basis, new home sales were up 9.2%.
    • The key takeaway from the report is that new home sales, which are counted when contracts are signed, are being squeezed by high costs for builders and high prices for buyers. This connection is showing up in the reduced percentage of sales for homes priced under $399,999 and the increased percentage of sales for homes priced over $500,000.
  • The current account deficit for the first quarter totaled $195.7 billion ( consensus -$207.1 billion). The fourth quarter deficit was downwardly revised to $175.1 billion from $188.5 billion.
  • The preliminary IHS Markit Manufacturing PMI for June increased to 62.6 from 62.1 in May. The preliminary IHS Markit Services PMI for June decreased to 64.8 from 70.4 in May.
  • The weekly MBA Mortgage Applications Index increased 2.1% following a 4.2% increase in the prior week.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Durable Goods Orders for May, the third estimate for Q1 GDP, and advance May readings for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories on Thursday.

  • Russell 2000 +16.6% YTD
  • S&P 500 +12.9% YTD
  • Nasdaq Composite +10.7% YTD
  • Dow Jones Industrial Average +10.7% 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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