Stock Market Update

[BRIEFING.COM] The stock market's trend of upwards momentum continued through today's trade, culminating in new record intraday and closing highs for the S&P 500 (+0.4%) and Nasdaq Composite (+0.4%). 

A lack of major catalysts saw the indices face resistance at yesterday's record high levels, but prevailing optimism around earnings reports and trade developments saw the S&P 500 and Nasdaq push to new records just before 12:30 ET.

The S&P 500 reached 6,395.82 today and finished at 6,388.64. 

The Nasdaq Composite reached 21,159.80 and settled at 21,108.32.

The Wall Street Journal reported that the Trump administration will hold trade talks with China next week, while Reuters reported that the U.S. and EU could reach the foundation of a trade deal by this weekend. The market viewed these headlines optimistically, with this week's announcement of a trade deal with Japan providing confidence that better trade deals with key partners can be negotiated before the August 1 deadline. 

On the earnings front, today's reports (while not as consequential as yesterday's) were generally positive, strengthening the notion that there is even further upside if next week's mega-cap earnings reports beat expectations.

The consumer discretionary sector (+0.8%) finished as one of the best performers of the day, with Deckers Outdoor (DECK 116.92, +11.98, +11.4%) finishing as the top gainer in the S&P 500 after the company beat EPS expectations by $0.25.

The sector also benefitted from Tesla (TSLA 316.04, +10.74, +3.5%) rallying from an 8.2% loss yesterday after the company reported earnings in line and issued cautious guidance about the next several quarters. 

The materials (+1.2%), industrials (+1.0%), financials (+0.7%), and health care (+0.5%) sectors round out the top five performers of a day that saw nine sectors finish in positive territory, with only the energy (-0.4%) and communication services (-0.2%) sectors closing with a loss.

Today's broad-based gains were widened throughout the duration of the session. Some early gains among mega-cap names initiated the advances in the major averages, but breadth figures were decidedly negative until the afternoon. 

Advancers ultimately outpaced decliners by an 8-to-5 ratio on the NYSE, while advancers narrowly surpassed decliners on the Nasdaq. 

The improvement in breadth figures benefitted smaller stocks, with the Russell 2000 finishing with a gain of 0.4% after spending most of the morning in negative territory. Mid-cap stocks advanced even further, with the S&P Mid Cap 400 finishing with a gain of 0.9%.

Overall, risk appetite remained strong, with broad participation across market caps and sectors, helping the S&P 500 and Nasdaq extend their record-setting streaks.

U.S. Treasuries finished the week on a subdued note, with 10s and 30s padding this week's modest gains, while the 2-yr note finished flat, ending the week with a modest loss.

The entire complex spent afternoon trade near session highs, with the 30-yr yield finishing just above its 50-day moving average (4.925%) while the 10-yr yield fell below the 50-day moving average of its own (4.408%), settling not far above its 200-day moving average (4.371%).

The 10-yr note yield settled down two basis points to 4.39%.

• Nasdaq Composite: +9.3% YTD
• S&P 500: +8.6% YTD
• DJIA: +5.5% YTD
• S&P 400: +3.1% YTD
• Russell 2000: +1.4% YTD

Reviewing today's data:

• Durable goods orders were down 9.3% month-over-month in June (Briefing.com consensus -11.0%) after an upwardly revised 16.5% jump in May (from 16.4%). Excluding transportation, durable goods orders were up 0.2% month-over-month (Briefing.com consensus -0.2%) after rising a revised 0.6% (from 0.5%) in May.
  • The key takeaway from the report is that the sharp headline decrease was largely due to a drop in transportation equipment orders after a big jump in May, though nondefense capital goods orders, excluding aircraft—a proxy for business spending—fell 0.7% after increasing 2.0% in May, reflecting a moderation after a solid rise

[BRIEFING.COM] The major averages trade in a relatively tight range as the market enters the final half hour of the session.

Today's gains have been broad-based, as only the energy (-0.2%) and communication services (-0.1%) sectors trade in negative territory. 

The energy sector faced pressure from lower oil prices today, as crude oil futures settled today's session $0.89 lower (-1.4%) at $65.17/barrel, sliding back below its 50-day moving average (65.87).

While the sector has seen some profit-taking today, it still sports a 1.6% gain for the week, which is in line with the 1.5% week-to-date gain of the S&P 500. 

[BRIEFING.COM] The major averages trade near their best levels of the session, with the S&P 500 and DJIA both up 0.5%, while the Nasdaq Composite is up 0.4%.

Breadth figures have improved throughout the session, as advancers now outpace decliners at a 3-to-2 ratio on the NYSE, while decliners still hold a slim advantage on the Nasdaq.

Eight sectors trade in positive territory for the day, and while this has been the case for most of the session, gains have widened this afternoon. The materials (+1.0%), industrials (+0.9%), consumer discretionary (+0.8%), and financials (+0.8%) sectors all post gains above 0.5%.

Performance has also improved across smaller-cap stocks. The S&P Mid Cap 400 now holds a 0.8% gain for the day, and the Russell 2000 is up 0.3% after spending the majority of the session in negative territory. 

[BRIEFING.COM] The S&P 500 (+0.49%) is in first place on Friday afternoon, up about 30 points.

Briefly, S&P 500 constituents VeriSign (VRSN 305.52, +18.85, +6.58%), LyondellBasell (LYB 63.57, +2.87, +4.73%), and Axon (AXON 740.51, +31.25, +4.41%) pepper the top of the standings. VRSN makes all-time highs today following last night's earnings beat.

Meanwhile, Charter Comm (CHTR 311.71, -68.29, -17.97%) makes 52-week lows following this morning's earnings miss.

[BRIEFING.COM] The Nasdaq Composite (+0.33%) is up about 69 points, just off session highs.

Gold futures settled $37.90 lower (-1.1%) at $3,335.60/oz, today's losses taking the yellow metal into negative territory (-0.7%) on the week; the move lower was driven by growing optimism around U.S. trade negotiations, particularly signs of progress in deals with the EU and Japan, which lifted risk appetite and reduced safe-haven demand for gold. Meanwhile, a softening U.S. dollar and expectations for potential Fed rate cuts in September helped cushion the downside.

Meanwhile, the U.S. Dollar Index is up about +0.2% to $97.71.