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End of Day Brief - Friday Sept 24 - Markets end the week mixed

SP 5004455.48+6.50(0.15%)
10-yr Note -2/321.454
NYSEAdv 1305 Dec 1925 Vol 763.3 mln
NasdaqAdv 1837 Dec 2451 Vol 3.9 bln

Industry Watch

Strong: Energy, Communication Services, Financials
Weak: Real Estate, Health Care, Materials, Utilities

Moving the Market

-- Large-cap indices take a breaker and close little changed

-- Long-term interest rates increased for the second straight day

-- Nike (NKE) issues downside revenue guidance due to supply chain issues

-- S&P 500 supported by its 50-day moving average (4439)

Market takes a breather to end the week

Dow +33.18 at 34798.00, Nasdaq -4.54 at 15047.70, S&P +6.50 at 4455.48

[BRIEFING.COM] The large-cap indices closed little changed on Friday, as the market took a breather and digested another increase in long-term interest rates. The S&P 500 (+0.2%) and Dow Jones Industrial Average (+0.1%) eked out gains while the Nasdaq Composite (-0.03%) closed fractionally lower. The Russell 2000 declined 0.5%.

The session started with index losses ranging from 0.3% (Dow) to 0.9% (Nasdaq). The shaky start was attributed to valuation-oriented weakness in the growth stocks amid the higher rates, a revenue warning from Nike ($NKE 149.59, -9.99, -6.3%) due to supply chain issues, and news that Evergrande didn't make a payment on a dollar-denominated bond yesterday.

The 10-yr yield settled higher by five basis points to 1.46% after touching 1.30% in the wee hours of Thursday morning.

The S&P 500 financials sector (+0.6%) naturally keyed off the higher rates, but it was outpaced by the energy (+0.8%) and communication services (+0.7%) sectors from a percentage standpoint. The real estate (-1.2%), health care (-0.4%), materials (-0.2%), and utilities (-0.2%) sectors closed lower.

Sellers loosened their influence on the market amid a recognition that the S&P 500 reclaimed -- and stayed above -- its 50-day moving average (4439) after opening below the key technical level. Buying efforts, however, were tempered in part due to a recognition that the S&P 500 was already up more than 3.0% from Monday's low.

Resiliently, the Russell 1000 Growth Index overcome an early 0.6% decline and increased 0.1%, matching the gain of the Russell 1000 Value Index (+0.1%).

Costco ($COST 467.75, +14.97, +3.3%) and McDonald's ($MCD 246.42, +1.64, +0.7%) were two other story stocks today. Costco beat EPS estimates while McDonald's raised its dividend by 7% and announced a resumption of share repurchases.

The 2-yr yield increased one basis point to 0.27%. The U.S. Dollar Index decreased 0.2% to 93.28. WTI crude futures increased 0.9%, or $0.67, to $74.00/BBL.

Reviewing Friday's economic data:

  • New home sales increased 1.5% month-over-month to a seasonally adjusted annual rate of 740,000 ( consensus 720,000) from an upwardly revised 729,000 (from 708,000) in July.
    • The key takeaway from the report is that new home sales momentum has been slowed by cost constraints that are making it less enticing for builders to build lower-priced homes and by affordability pressures that are making it more challenging for prospective buyers to buy higher-priced homes.

Looking ahead, investors will receive Durable Goods Orders for August on Monday.

  • S&P 500 +18.6% YTD
  • Nasdaq Composite +16.8% YTD
  • Russell 2000 +13.8% YTD
  • Dow Jones Industrial Average +13.7% 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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