Stock Market Update

[BRIEFING.COM] The S&P 500 and Nasdaq Composite extended their record highs today in front of the holiday tomorrow. Bond and equity markets are closed Wednesday for Juneteenth. 

There wasn't a lot of conviction from either buyers or sellers in front of the break and due to the understanding that stocks continue to hit all-time highs. Advancers had a 4-to-3 lead over decliners at the NYSE while decliners led advancers by the same margin at the Nasdaq. 

Many of the top-weighted S&P 500 components closed with losses, keeping the broader market in check. Apple (AAPL 214.29, -2.38, -1.1%), Microsoft (MSFT 446.34, -2.03, -0.5%), and Meta Platforms (META 499.49, -7.14, -1.4%) were some losing standouts in that respect.

A solid jump in shares of NVIDIA (NVDA 135.58, +4.60, +3.5%) provided some offsetting support. The stock was responding to news that Delloite announced a collaboration with Hewlett Packard Enterprise (HPE 21.84, +0.31, +1.4%) and NVIDIA on co-developed generative AI solutions.

Gains in some of the aforementioned names boosted the information technology sector (+0.6%) toward the top of the leaderboard today. The financial sector was another top performer, gaining 0.6%.

Meanwhile, the consumer discretionary sector was among the top laggards, dropping 0.4%, due in part to weakness in homebuilder stocks after Lennar (LEN 148.72, -7.79, -5.0%) reporting earnings. Selling in the stock was related to disappointing outlook for a sequential decline in orders.

Treasury yields moved lower today. The 10-yr note yield settled six basis points lower at 4.22% and the 2-yr note yield declined six basis points to 4.70%.

This price action followed a batch of mixed economic data that included weaker-than-expected retail sales, stronger-than-expected industrial production, and in-line business inventories. Treasuries were also reacting to today's impressive $13 billion 20-yr bond reopening.

• Nasdaq Composite: +19.0% YTD
• S&P 500:+15.0% YTD
• S&P Midcap 400: +5.3% YTD
• Dow Jones Industrial Average: +3.0% YTD
• Russell 2000: -0.1% YTD

Reviewing today's economic data:

• May Retail Sales 0.1% (Briefing.com consensus 0.3%); Prior was revised to -0.2% from 0.0%; May Retail Sales ex-auto -0.1% (Briefing.com consensus 0.2%); Prior was revised to -0.1% from 0.2%
  • The key takeaway from the report is that it reflects some slowing in consumer spending on goods that will be accounted for in weaker Q2 real GDP forecasts.
• May Industrial Production 0.9% (Briefing.com consensus 0.4%); Prior 0.0%; May Capacity Utilization 78.7% (Briefing.com consensus 78.5%); Prior was revised to 78.2% from 78.4%
  • The key takeaway from the report was that gains were widespread across the major market groups, with particular strength in manufacturing output that should mitigate hard-landing concerns.
• April Business Inventories 0.3% (Briefing.com consensus 0.3%); Prior -0.1%

Wednesday's calendar features the release of the weekly MBA Mortgage Applications Index at 7:00 ET and the June NAHB Housing Market Index at 10:00 ET.