EmailStock Market Update
Market Snapshot
| Dow | 15087.73 | -30.76 | (-0.20%) |
| Nasdaq | 3442.92 | +6.34 | (0.18%) |
| SP 500 | 1634.38 | +0.68 | (0.04%) |
| 10-yr Note | -6/32 | 1.923 | |
| NYSE | Adv 1201 | Dec 1743 | Vol 247.5 mln |
| Nasdaq | Adv 1128 | Dec 1282 | Vol 858.1 mln |
Industry Watch
| Strong: Consumer Staples, Health Care |
| Weak: Materials, Utilities, Industrials |
Moving the Market
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March business inventories: 0.0% actual, +0.3% Briefing.com consensus, +0.1% prior April retail sales: +0.1% actual, -0.3% Briefing.com consensus, -0.5% prior Retail sales ex-auto: -0.1% actual, -0.2% Briefing.com consensus, -0.4% prior |
Stocks Mixed at Midday
13-May-13 13:00 ET
Dow -30.76
at 15087.73,
Nasdaq +6.34
at 3442.92,
S&P +0.68
at 1634.38
[BRIEFING.COM] The major averages trade in mixed fashion as all three hover within 0.2% of their respective flat lines.
Equities began the session on a lower note with all ten sectors trading in the red. Contributing to the early weakness was a Friday night Wall Street Journal article, which confirmed Thursday's speculation that the Federal Reserve has begun to map out a plan to slow the pace of its asset purchase program.
While the Fed's discussion of an exit strategy was not surprising in itself, the timing of actual policy modification remains uncertain as changes would likely have to be preceded by a notable improvement in the labor market.
Stocks climbed off their opening lows amid some mixed sector leadership with health care displaying strength out of the gate.
The defensively-oriented health care space trades with a solid gain as biotechnology continues its recent outperformance. The iShares Nasdaq Biotechnology ETF (IBB 183.19, +3.17) is higher by 1.8% and up 5.0% since last Thursday. The relative strength of biotech has provided some support to the health care sector as well as the Nasdaq index.
The consumer staples sector is another defensive group trading ahead of the broader market. However, the other two defensively-geared sectors, utilities and telecom, hover in the red.
Notably, the utilities space has continued its recent weakness. The sector is off by 0.6% today, and down 4.7% this month.
Late-morning strength of bank shares has pushed the financial sector into positive territory. Although most U.S. financials trade in the black, their European counterparts have lagged. Banco Santander (SAN 7.04, -0.16), Barclays (BCS 19.15, -0.33), and Deutsche Bank (DB 46.93, -0.57) are all down between 1.1% and 2.2%.
Even as the S&P trades near its session high, market breadth remains negative. For every advancing issue on the New York Stocks Exchange, roughly 1.5 names register a loss.
Reviewing today's economic data, business inventories growth was flat for a second consecutive month in March. The Briefing.com consensus expected business inventories to increase 0.3%.
Inventory growth from manufacturers (0.0%) and merchant wholesalers (0.4%) was known prior to the release. The only new information was that retailer inventories declined 0.5% in March after increasing 0.2% in February.
Retail sales increased 0.1% in April after declining 0.5% in March. The Briefing.com consensus expected retail sales to decline 0.3%.
The April employment report showed a 0.3% decline in aggregate wages. The increase in sales was a result of consumers reducing their savings rate. That may work in the short-run, but consumers are expected eventually to increase their savings rate back to 2012 levels. Unless income growth accelerates, retail sales growth will likely decelerate and possibly contract in the long-run.
Equities began the session on a lower note with all ten sectors trading in the red. Contributing to the early weakness was a Friday night Wall Street Journal article, which confirmed Thursday's speculation that the Federal Reserve has begun to map out a plan to slow the pace of its asset purchase program.
While the Fed's discussion of an exit strategy was not surprising in itself, the timing of actual policy modification remains uncertain as changes would likely have to be preceded by a notable improvement in the labor market.
Stocks climbed off their opening lows amid some mixed sector leadership with health care displaying strength out of the gate.
The defensively-oriented health care space trades with a solid gain as biotechnology continues its recent outperformance. The iShares Nasdaq Biotechnology ETF (IBB 183.19, +3.17) is higher by 1.8% and up 5.0% since last Thursday. The relative strength of biotech has provided some support to the health care sector as well as the Nasdaq index.
The consumer staples sector is another defensive group trading ahead of the broader market. However, the other two defensively-geared sectors, utilities and telecom, hover in the red.
Notably, the utilities space has continued its recent weakness. The sector is off by 0.6% today, and down 4.7% this month.
Late-morning strength of bank shares has pushed the financial sector into positive territory. Although most U.S. financials trade in the black, their European counterparts have lagged. Banco Santander (SAN 7.04, -0.16), Barclays (BCS 19.15, -0.33), and Deutsche Bank (DB 46.93, -0.57) are all down between 1.1% and 2.2%.
Even as the S&P trades near its session high, market breadth remains negative. For every advancing issue on the New York Stocks Exchange, roughly 1.5 names register a loss.
Reviewing today's economic data, business inventories growth was flat for a second consecutive month in March. The Briefing.com consensus expected business inventories to increase 0.3%.
Inventory growth from manufacturers (0.0%) and merchant wholesalers (0.4%) was known prior to the release. The only new information was that retailer inventories declined 0.5% in March after increasing 0.2% in February.
Retail sales increased 0.1% in April after declining 0.5% in March. The Briefing.com consensus expected retail sales to decline 0.3%.
The April employment report showed a 0.3% decline in aggregate wages. The increase in sales was a result of consumers reducing their savings rate. That may work in the short-run, but consumers are expected eventually to increase their savings rate back to 2012 levels. Unless income growth accelerates, retail sales growth will likely decelerate and possibly contract in the long-run.
