Stock Market Update

[BRIEFING.COM] The stock market closed with losses, extending a broad retreat that started on Friday. The major indices closed above their session lows due to some technical movement after the S&P 500 dipped below its 50-day moving average (5,942), which initially drew in buy-the-dip interest. The key technical level pivoted from support to resistance, however, and the S&P 500 moved laterally below that level through the afternoon.

The S&P 500 was more than 100 points lower at its intraday close and settled about 64 points lower, showing a 1.1% decline. The Nasdaq Composite traded down as much as 1.9% at its low and closed 1.2% below its prior close.

Turnaround action in NVIDIA (NVDA 137.49, +0.48, +0.4%) also helped the major indices move off session lows. NVDA shares had been down as much as 2.2% at their worst levels of the day.

The overall vibe remained negative through the entire session. Decliners had a 2-to-1 lead over advancers at the NYSE and a 3-to-2 lead at the Nasdaq. All 11 S&P 500 sectors logged declines ranging from 0.1% (energy) to 1.6% (consumer discretionary).

The downside bias was related to profit-taking after a strong year and some hesitation in front of the New Year's holiday closures. Several foreign markets are closed tomorrow (or closing early) for the New Year's holiday. U.S. markets are open for a full day of trading on Tuesday, but will be closed Wednesday.

Treasuries settled with gains, benefitting from safe-haven buying and rebalancing activity as stocks succumbed to selling interest. The 10-yr yield settled seven basis points lower at 4.55% and the 2-yr yield settled eight basis points lower at 4.25%.

• Nasdaq Composite: +29.8% YTD
• S&P 500: +23.8% YTD
• Dow Jones Industrial Average: +13.0% YTD
• S&P Midcap 400: +12.1% YTD
• Russell 2000: +9.9% YTD

Reviewing today's economic data:

• December Chicago PMI 36.9 (Briefing.com consensus 42.7); Prior 40.1
• November Pending Home Sales 2.2% (Briefing.com consensus 0.9%); Prior was revised to 1.8% from 2.0%

Looking ahead, Tuesday's economic lineup features: 

• 09:00 ET: October FHFA Housing Price index (prior 0.7%)
• 09:00 ET: October S&P Case-Shiller Home Price index (Briefing.com consensus 4.2%; prior 4.6%)