Stock Market Update

[BRIEFING.COM] The stock market had a mixed showing. The S&P 500 (-0.3%), the Nasdaq Composite (-0.5%), and the Dow Jones Industrial Average (-0.4%) traded above and below prior closing levels.

Mixed messages on the tariff front and in economic data contributed to the choppy action. President Trump's Wednesday evening announcement that a 25% tariff will be imposed on all car and light truck imports into the United States sent carmakers sharply lower, yet he also added that reciprocal tariffs will be "lenient."

Weekly jobless claims continue to run below recession-like levels and an Advance International Trade in Goods Report for February still showed a substantive goods deficit (-$147.9 billion), yet it narrowed from January (-$155.6 billion).

Mixed action in the mega cap space also contributed to the up and down action at the index level. Tesla (TSLA 273.13, +1.07, +0.4%), which is perceived as a relative beneficiary of the auto tariff action on imported vehicles, was a standout on the winning side while NVIDIA (NVDA 111.43, -2.33, -2.1%) underperformed along with other chipmakers.

Treasuries settled in mixed fashion. The 10-yr yield rose three basis points to 4.37% and the 2-yr yield fell one basis point to 4.00%. On a related note, the U.S. Treasury completed this week's note offering slate with a weak sale of 7-yr notes.

• Dow Jones Industrial Average: -0.6% YTD
• S&P 500: -3.2% YTD
• S&P Midcap 400: -4.9% YTD
• Russell 2000: -7.4% YTD
• Nasdaq Composite: -7.8% YTD

Reviewing today's economic data:

• Q4 GDP - Third Estimate 2.4% (Briefing.com consensus 2.3%); Prior 2.3%, Q4 GDP Deflator - Third Estimate 2.3% (Briefing.com consensus 2.4%); Prior 2.4%
  • The key takeaway from the report is that it shows a nice expansion in activity during the fourth quarter that was underpinned by consumer spending; however, the report's impact on the market is muted by its dated nature (we're just days away from being done with the first quarter).
• Weekly Initial Claims 224K (Briefing.com consensus 225K); Prior was revised to 225K from 223K, Weekly Continuing Claims 1.856 mln; Prior was revised to 1.881 mln from 1.892 mln
  • The key takeaway from the report is that initial jobless claims -- a leading indicator -- continue to idle at levels consistent with an otherwise solid labor market.
• February Adv. Intl. Trade in Goods -$147.9 bln; Prior was revised to -$155.6 bln from -$153.3 bln
• February Adv. Retail Inventories 0.1%; Prior was revised to 0.1% from -0.1%
• February Adv. Wholesale Inventories 0.3%; Prior was revised to 0.8% from 0.7%
• February Pending Home Sales 2.0% (Briefing.com consensus 2.9%); Prior -4.6%
  • The key takeaway from the report is that the goods deficit, while outsized, narrowed on account of exports being $7.0 billion more than January exports and imports being $0.6 billion less than January imports.

Thursday's economic data includes:

• 8:30 ET: February Personal Income (Briefing.com consensus 0.4%; prior 0.9%), Personal Spending (Briefing.com consensus 0.6%; prior -0.2%), PCE Prices (Briefing.com consensus 0.3%; prior 0.3%), and Core PCE Prices (Briefing.com consensus 0.4%; prior 0.3%)
• 10:00 ET: Final March University of Michigan Consumer Sentiment (Briefing.com consensus 57.9; prior 57.9)