Stock Market Update

[BRIEFING.COM] Today's trade featured a negative bias after yesterday's all-time high for the S&P 500 (-0.4%). The major indices made a sharp move lower right out of the gate, driven by consolidation efforts and profit-taking. However, there was a steady climb off session lows in the afternoon trade, reflecting an ongoing inclination to buy on any weakness.

The S&P 500 traded down as much as 1.0% and closed with a 0.4% decline. Decliners had a 2-to-1 lead over advancers at the NYSE shortly after the open, but that margin narrowed to a 4-to-3 ratio by the close. 

Disappointing fiscal Q1 and full-year guidance from Walmart (WMT 97.21, -6.79, -6.5%) contributed to the early selling interest. It was the worst performing stock in terms of percentage in the Dow Jones Industrial Average and in the S&P 500 consumer staples sector (-1.0%).

The heavily-weighted consumer discretionary and financial sector were also noticeably weak, dropping 1.1% and 1.6%, respectively. The sectors comprise 25% of the S&P 500 in terms of market capitalization. 

On the flip side, the energy sector (+1.0%) was the top performer, benefitting from rising oil prices ($72.49/bbl, +0.42, +0.6%).

The 10-yr yield settled four basis points lower at 4.50% and the 2-yr yield was unchanged at 4.27%. Treasuries didn't react much to some relatively soft economic data. Weekly jobless claims increased more than expected while the Philadelphia Fed Survey for February was weaker than expected. 

• Dow Jones Industrial Average: +3.8% YTD
• S&P 500: +4.0% YTD
• Nasdaq Composite: +3.4%
• S&P Midcap 400: +1.8% YTD
• Russell 2000: +1.4% YTD

Reviewing today's economic data:

• Weekly Initial Claims 219K (Briefing.com consensus 217K); Prior was revised to 214K from 213K, Weekly Continuing Claims 1.869 mln; Prior was revised to 1.845 mln from 1.850 mln
  • The key takeaway from the report is that it covers the period in which the household survey for the employment report is conducted, and with the continued low level of initial jobless claims, economists are apt to be expecting a fairly solid increase in February nonfarm payrolls.
• February Philadelphia Fed Index 18.1 (Briefing.com consensus 20.5); Prior 44.3
  • The key takeaway from the report is that new order activity decreased from January while the prices paid index and prices received index both increased from January.
• January Leading Indicators -0.3% (Briefing.com consensus 0.0%); Prior was revised to 0.1% from -0.1%

Looking ahead, Friday's economic lineup includes the flash February S&P Global U.S. Manufacturing PMI and flash February S&P Global U.S. Services PMI readings at 9:45 ET, and the January Existing Home Sales and final February University of Michigan Consumer Sentiment survey at 10:00 ET.