Stock Market Update

[BRIEFING.COM] Today's trade features mixed action at the index level and mixed action under the surface, reflected in market internals. Advancers lead decliners by an 11-to-10 margin at the NYSE and decliners have a slim lead over advancers at the Nasdaq.

The S&P 500 (+0.2%) has traded above and below its prior close while the Dow Jones Industrial Average (+0.7%) trades up and the Nasdaq Composite (-0.3%) trades lower.

The lack of conviction on either side of the tape follows yesterday's record high for the S&P 500 and is related to some consolidation activity induced by rising market rates.

The 10-yr yield is four basis points higher than yesterday at 4.64%. Yields are still well below levels seen last week when the 10-yr yield hit 4.80%, which has limited consolidation interest and kept downside moves to a minimum. 

Buying in blue-chip names has also kept downside moves in the S&P 500 and Nasdaq to a minimum, and has propelled the Dow Jones Industrial Average higher. The S&P 500 industrial sector has also benefitted from buying in blue chip companies that reported earnings since yesterday's close. GE Aerospace (GE 201.02, +12.66, +6.7%) and Union Pacific (UNP 247.03, +11.23, +4.8%) are standouts in that respect after reporting encouraging earnings results and guidance.

The only S&P 500 sectors trading lower are information technology (-0.6%) and consumer discretionary (-0.2%), reflecting the underperformance of some mega cap constituents. 

Reviewing today's economic data:

• Weekly Initial Claims 223K (Briefing.com consensus 219K); Prior 217K, Weekly Continuing Claims 1.899 mln; Prior was revised to 1.853 mln from 1.859 mln
  • The key takeaway from the report is the elevated level of continuing jobless claims, which connotes some increasing challenges in finding new employment after being laid off.
• Weekly EIA Crude Oil Inventories showed a draw of 1.02 million barrels; prior showed draw of 1.96 million
• Weekly EIA Natural Gas Inventories showed a draw of 223 bcf vs a draw of 258 bcf last week