Daily Sector Wrap

Updated: 23-Feb-24 16:26 ET
Market little changed after NVDA-induced rally

The movement in the stock market was limited today after yesterday's surge in response to NVIDIA's (NVDA 788.17, +2.79, +0.4%) earnings report. The major indices spent most of the session trading near their prior closing levels.

Ultimately, the S&P 500 and Dow Jones Industrial Average eked out another gain, extending further into record territory. The Nasdaq Composite, meanwhile, declined 0.3% due to lagging semiconductor names and growth stocks. 

After leading the market higher yesterday in sympathy with NVDA, semiconductor stocks underperformed the broader market. The PHLX Semiconductor Index (SOX) slipped 1.2%, leaving its gain this week at 1.9%. Growth stocks also underperformed relative to value stocks. The Russell 3000 Value Index gained 0.4% while the Russell 3000 Growth Index closed little changed from yesterday.

Still, the A-D line was positive, reflecting a slightly positive bias under the index surface. Advancers led decliners by a 3-to-2 margin at the NYSE and by a 4-to-3 margin at the Nasdaq. 

The positive disposition was partially driven by carryover momentum following yesterday's rally. A nice drop in the 10-yr Treasury note yield, down seven basis points to 4.26%, also acted as support for equities. 

Seven of the 11 S&P 500 sectors closed higher, led by utilities (+0.7%), materials (+0.6%), and industrials (+0.5%). Meanwhile, the energy sector (-0.6%) saw the largest decline as oil and natural gas prices dropped. WTI crude oil futures fell 2.6% to $76.52/bbl and natural gas futures dropped 7.1% to $1.70/mmbtu.

The consumer discretionary sector (-0.3%) also lagged the broader market due weakness in shares of Booking Holdings (BKNG 3,505.96, -396.03, -10.2%). BKNG was the worst performing stock in the S&P 500 today after reporting earnings.

Warner Bros Discover (WBD 8.61, -0.95, -9.9%) was another notable laggard after disappointing earnings, weighing down the communication services sector (-0.2%).

  • S&P 500: +6.7% YTD
  • Nasdaq Composite: +6.6% YTD
  • Dow Jones Industrial Average: +3.8% YTD
  • S&P Midcap 400: +2.8% YTD
  • Russell 2000: -0.5% YTD

There was no US economic data of note on Friday.

Monday's economic lineup is limited to the January New Homes Sales report at 10:00 ET.

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