Closing Comment — Friday, September 17, 2021
DJIA: 34,584.88, down 166.44
S&P 500: 4,432.99, down 40.76
Nasdaq Composite: 15,043.97, down 137.95
S&P 500 sees first two-week drop since May
U.S. stocks finished firmly lower on Friday, with the S&P 500 posting its first back-to-back weekly decline since May. The broad benchmark fell 0.9%, dragging it 0.6% lower on the week, though still remains within 2.3% of its most recent September 2 record high. The Dow lost 166 points, bringing its five-day decline to 0.1%, and notably the blue chip index’s third consecutive weekly dip, a streak not seen in a year. The Nasdaq Composite shed 0.9%, capping a weekly loss of 0.5%. The Nasdaq 100 suffered its worst day since May (-1.2%) amid weakness in mega-cap and growth-oriented shares.
Volatility and trading volume were elevated amid today’s “triple witching” event, a quarterly occurrence during which options and futures simultaneously expire. Meanwhile, a confluence of factors have been clouding the near-term growth outlook during the seasonally weak month of September.
Ten of 11 S&P 500 sectors closed in negative territory, with Materials leading the decline amid continued selling pressure in the metals complex. Health Care bucked the downtrend, with Thermo Fisher Scientific jumping 6.5% after the medical equipment maker provided upbeat forward guidance.
Treasuries weakened, with the yield on the 10-year note up three basis points to 1.37%. On the data front, a preliminary September reading on consumer sentiment from the University of Michigan showed a modest improvement to 71.0 from August’s near decade-low of 70.3. In commodities, WTI crude slipped 0.8% to $72.00/barrel but still notched a fourth straight weekly gain. COMEX gold ended the day 0.3% lower at $1,750.00/ounce as a gauge of the U.S. dollar climbed 0.3%.
Midday Comment — Friday, September 17, 2021
DJIA: 34,575.45, down 175.87
S&P 500: 4,441.02, down 32.73
Nasdaq Composite: 15,031.20, down 150.72
Stocks head for weekly losses; Yields rise
U.S. stocks are firmly lower near mid-session Friday as Wall Street continues to cautiously trudge through the seasonally weak month of September. A confluence of factors are still clouding the near-term growth outlook, with lingering pandemic concerns, Federal Reserve tapering jitters, ongoing supply chain bottlenecks and corresponding price pressures providing downside pressure to risk assets. Meanwhile, volatility and trading volume are elevated amid “triple witching,” a quarterly event during which options and futures simultaneously expire. The Dow is slumping 175 points, while the S&P 500 is losing 0.7%. The Nasdaq Composite is sliding 1%. All three benchmarks are now poised for weekly declines.
On the data front, a preliminary September reading on consumer sentiment from the University of Michigan showed a modest improvement to 71.0 from August’s near decade-low of 70.3. Treasuries are declining, with the yield on the benchmark 10-year note up three basis points to 1.37%. In commodities, WTI crude is down 1.5% to $71.55/barrel but remains on track for a fourth consecutive weekly gain (+2.6%). COMEX gold is off 0.1% to $1752.60/ounce amid a stronger U.S. dollar.
All 11 S&P 500 sectors are trading in negative territory, with Materials leading laggards as miners grapple with this week’s more than 20% slump in iron ore prices. Tech and growth-related names are also underperforming, with the oft-cited FAAMG group losing 1.4%. In corporate news, Invesco is up 6.1% on rumors of a possible merger with State Street’s asset management arm. Breadth is negative on issues by 2:1 on the NYSE and 7:5 on the Nasdaq. Composite NYSE volume is greater than 1.8 billion shares.
Opening Comment — Friday, September 17, 2021
DJIA: 34,651.30, down 100.02
S&P 500: 4,450.88, down 22.87
Nasdaq Composite: 15,099.76, down 82.16
Stocks open lower; Materials and Tech lag
U.S. stocks are lower in early trading Friday as Wall Street continues to cautiously trudge through the seasonally weak month of September. Volatility and trading volume could increase later in the session amid a “triple witching,” a quarterly event during which options and futures simultaneously expire. The Dow is falling 100 points, but still poised for a 0.2% weekly advance. The S&P 500 and Nasdaq Composite are each losing 0.5%, with both benchmarks turning lower for the week. A confluence of factors are still clouding the near-term outlook for economic growth and providing downside pressure to U.S. equities.
On the data front, a preliminary September reading on consumer sentiment from the University of Michigan showed a modest improvement to 71.0 from August’s near decade-low of 70.3. Treasuries are declining, with the yield on the benchmark 10-year note up three basis points to 1.37%. In commodities, WTI crude is down 1.1% to $71.83/barrel but still heading for a fourth consecutive weekly gain (+3%). COMEX gold is losing 0.3% to $1748.80/ounce amid a stronger U.S. dollar.
Ten of 11 S&P 500 sectors are trading in negative territory. The Materials group is leading laggards as miners grapple with this week’s 20% slump in iron ore prices. In corporate news, shares of investment management firm Invesco are up 5.5% on rumors of a possible merger with State Street’s asset management arm. Elsewhere, Take-Two Interactive is slipping 1.2% on the heels of an analyst downgrade. Breadth is negative on issues by 5:3 on the NYSE and 6:4 on the Nasdaq.