Briefing.com

Stock Market Update

Updated: 26-May-17

The market at 16:30 ET
Dow: -2.67...
Nasdaq: +4.94... S&P: +0.75...
NYSE Vol: 682.8 mln.. Adv: 1549.. Dec: 1359
Nasdaq Vol: 1.57 bln.. Adv: 1241.. Dec: 1351
Moving the Market Sector Watch


Caution following six-consecutive wins for the equity market

Crude oil bounces back from big Thursday loss
Strong: Consumer Staples, Consumer Discretionary, Materials

Weak: Real Estate, Health Care, Telecom Services
16:30 ET Dow -2.67 at 21080.28, Nasdaq +4.94 at 6210.17, S&P +0.75 at 2415.82

[BRIEFING.COM] Friday's session was range-bound throughout with the major U.S. indices trending sideways at their unchanged marks from start to finish. The S&P 500 (unch) and the Nasdaq (+0.1%) eked out their seventh-consecutive wins while the Dow (unch) finished three points below its flat line. For the week, the S&P 500 added 1.4%.

Sector movement was modest with ten of the eleven groups settling within 0.3% of their unchanged marks. The consumer staples sector (+0.3%) finished ahead of the broader market, thanks in part to Costco's (COST 177.86, +3.13) positive performance; the company added 1.8% after reporting better than expected earnings and revenues. The consumer discretionary (+0.3%) and materials (+0.3%) spaces also outperformed.

The energy sector (+0.1%) finished slightly higher with crude oil climbing 1.8% to $49.78/bbl, which was an encouraging sign in light of yesterday's tumble. On Thursday, WTI crude dropped 4.8% after OPEC and non-OPEC nations agreed to maintain their current production levels for nine months, but stopped short of cutting production once again. For the week, WTI crude lost 1.1%.

Similarly, the top-weighted technology space (unch) registered a slim gain. Chipmakers underpinned the sector, evidenced by the 0.4% increase the PHLX Semiconductor Index. Marvell (MRVL 17.67, +0.73) led the semiconductor advance, jumping 4.3%, after reporting better than expected earnings/revenues and issuing upbeat guidance.

On the flip side, the real estate group posted a notable loss, slipping 0.7%, but the other laggards finished just a step below their flat lines. The health care space (-0.2%) showed relative weakness as biotech names weighed; the iShares Nasdaq Biotechnology ETF (IBB 288.22, -2.30) lost 0.8%. Incyte (INCY 134.38, -4.03) was the weakest biotech name, dropping 2.9%.

Today's participation was a bit light ahead of the extended holiday weekend; 682.8 million shares changed hands at the NYSE floor (50-day simple moving average: 1.1 billion).

Outside of the equity market, the U.S. dollar added 1.0% against the British pound (1.2813) following a UK pre-election poll, which suggested that the Labour party has gained some ground on the Conservative party ahead of the country's snap election on June 8. U.S. Treasuries ended Friday's session slightly higher with the benchmark 10-yr yield slipping one basis point to 2.25%.

On the data front, investors received several economic reports on Friday, including April Durable Orders, the second estimate of first quarter GDP, and the final reading of the University of Michigan Consumer Sentiment Survey for May:

  • April durable goods orders declined 0.7%, which is above the 1.8% decrease expected by the Briefing.com consensus. The prior month's reading was revised to 2.3% (from 0.7%). Excluding transportation, durable orders decreased 0.4% (Briefing.com consensus 0.4%) to follow the prior month's revised uptick of 0.8% (from -0.2%).
    • The key takeaway from the report is that nondefense capital goods orders excluding aircraft -- a proxy for business spending -- were flat for the second straight month. Shipments of those goods, which factor into GDP forecasts, declined 0.1% in April.
  • The second reading of first quarter GDP pointed to an expansion of 1.2%, while the Briefing.com consensus expected a reading of 0.8%. The second estimate of first quarter GDP Deflator came in at 2.2%, which below the Briefing.com consensus of 2.3%.
    • The key takeaway from the report is that the revision moved in the right direction, which will aid in tempering concerns about the slowdown when pitted against some otherwise rosy forecasts for the second quarter (Atlanta Fed GDPNow model at 4.1%) that should produce a more encouraging average for the first half of 2017.
  • The final reading of the University of Michigan Consumer Sentiment Index for May declined to 97.1 (Briefing.com consensus 97.5) from 97.7 in the preliminary reading.
    • The key takeaway from the report is that consumer sentiment levels continue to hover at post-election highs despite a politically partisan divide on the economic outlook.

The stock market will be closed on Monday in observance of Memorial Day. On Tuesday, investors will receive April Personal Income (Briefing.com consensus 0.4%) and Spending (Briefing.com consensus 0.4%) at 8:30 ET and May Consumer Confidence (Briefing.com consensus 119.5) at 10:00 ET.

  • Nasdaq Composite +15.4% YTD
  • S&P 500 +7.9% YTD
  • Dow Jones Industrial Average +6.7% YTD
  • Russell 2000 +1.9% YTD

Week In Review: Five for Five

The stock market registered five wins this week, three of which resulted in a new record high for the S&P 500. A continuation of last week's 'buy-the-dip' trade fueled the bulls at the beginning of the week, but the FOMC minutes from the May 2-3 meeting became the catalyst for the midweek move to new record highs. For the week, the S&P 500 added 1.4%.

Before moving into record-high territory, investors had to repair the damage done by last week's 800-pound gorilla; namely, a New York Times article that highlighted a potential obstruction of justice move by President Trump. The allegation prompted the stock market's worst one-day decline since September on May 17, therefore, investors' first priority was reclaiming what was lost.

Two modest wins on Monday (+0.5%) and Tuesday (+0.2%) put the S&P 500 right at the 2,400 mark, which is the level it hit right before the swoon on May 17. Led by the financial sector, the benchmark index challenged said level a few times on Tuesday, but it just needed a little something extra to get over the hump. The FOMC minutes from the May 2-3 meeting answered the call on Wednesday.

In the minutes, the Fed revealed a possible approach to unwind its massive balance sheet; the central bank would like to introduce a gradual increase of caps to limit the reinvestment of maturing securities. In addition, the Fed's willingness to discuss the issue showed that the central bank has pretty good confidence in the economic outlook, having attributed first quarter weakness to transitory factors.

Following the report, the S&P 500 advanced to new record highs on Wednesday and Thursday. However, investors in the crude oil futures market weren't so bullish. The energy component tumbled nearly 5.0% on Thursday after OPEC and non-OPEC nations agreed to extend their current production adjustment by nine months, but stopped short of increasing the magnitude of the supply cut.

Equities finished the week with a sleepy, range-bound performance on Friday as investors got a jump start on the extended holiday weekend. For the week, the top-weighted technology sector outperformed yet again, adding 2.3%, with Apple (AAPL), Alphabet (GOOG), Microsoft (MSFT), Amazon (AMZN), and Facebook (FB) increasing their aggregate market value to an astounding $2.93 trillion.

The fed funds futures market still points to the June FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 83.1%, up from last week's 78.5%.

..NYSE Adv/Dec 1549/1359. ..NASDAQ Adv/Dec 1241/1351.
15:45 ET Dow -3.26 at 21079.69, Nasdaq +2.30 at 6207.53, S&P +0.02 at 2415.09
[BRIEFING.COM]
  • Following yesterday's 5% plunge in WTI oil prices, July crude oil rose $0.91 to close at $49.78/barrel
  • In other energy, July nat gas gained $0.03 to $3.31/MMBtu
  • Moving over to the metals space
  • Precious metals posted some gains, while copper slipped lower
  • June gold finished the day $11.80 higher at $1268.10/oz, while July silver rose $0.14 to $17.33/oz
  • Meanwhile, July copper fell $0.03 to end at $2.57/lb
..NYSE Adv/Dec 1536/1376. ..NASDAQ Adv/Dec 1293/1534.
14:55 ET Dow -1.28 at 21081.67, Nasdaq +1.33 at 6206.56, S&P +0.38 at 2415.45

[BRIEFING.COM] Equities have a shot at closing higher for the seventh consecutive time as the major averages hover at their flat lines moving into the final stretch. 

The lightly-weighted real estate sector (-0.8%) has suffered a notable loss in today's session, but the ten remaining groups trade flat with gains/losses of no more than 0.2%. The biotechnology industry shows relative weakness, evidenced by the 0.8% decrease in the iShares Nasdaq Biotechnology ETF (IBB 288.08, -2.44). However, the industry's impact on the health care sector (-0.2%) has been relatively modest.

Earnings season is virtually in the books with nearly 98.0% of the S&P 500 components having already reported their quarterly results. Hewlett Packard Enterprise (HPE 18.82, -0.02) is the biggest name on next week's earnings docket. The company will deliver its latest report following Wednesday's closing bell.

..NYSE Adv/Dec 1542/1363. ..NASDAQ Adv/Dec 1174/1542.
14:30 ET Dow -1.05 at 21081.9, Nasdaq +1.45 at 6206.68, S&P +0.41 at 2415.48

[BRIEFING.COM] Range-bound action continues with the S&P 500 (unch) drifting within a four-point range for the entirety of today's session.

These five companies--Apple (AAPL 153.79, -0.08), Alphabet (GOOGL 992.77, +0.91), Microsoft (MSFT 70.00, +0.38), Amazon (AMZN 992.32, -1.15), and Facebook (FB 151.92, -0.03)--currently have an aggregate market value of an astounding $2.9 trillion. For comparison, the market value of the S&P 500 financial sector, which is comprised of 65 companies, including JP Morgan Chase (JPM 85.51, +0.17) and Goldman Sachs (GS 224.15, +1.68), is $2.89 trillion.

Undoubtedly, these five companies have played a huge role in the stock market's 2017 advance with all five holding year-to-date gains between 12.0% (Microsoft) and 33.0% (Apple). 

..NYSE Adv/Dec 1531/1356. ..NASDAQ Adv/Dec 1198/1505.
14:00 ET Dow -4.62 at 21078.33, Nasdaq +0.21 at 6205.44, S&P -0.55 at 2414.52

[BRIEFING.COM] Equity indices continue trending sideways at their unchanged marks.

The Dow Jones Transportation Average (+0.2%) trades a step ahead of the broader market with Kansas City Southern (KSU 95.86, +2.79) holding the top spot on the DJTA leaderboard, adding 3.1%. In addition to today's jump, KSU added 3.1% yesterday after bouncing off its 20-day simple moving average. The late-week rally leaves KSU shares at a fresh nine-month high. 

For the week, the DJTA has outpaced the S&P 500; the two indices show week-to-date gains of 3.5% and 1.4%, respectively. 

..NYSE Adv/Dec 1491/1384. ..NASDAQ Adv/Dec 1233/1483.
13:25 ET Dow +2.40 at 21085.35, Nasdaq +0.62 at 6205.85, S&P -0.13 at 2414.94

[BRIEFING.COM] The major averages have not done much today with the S&P 500 (unch) spending the first half of action inside a four-point range. Although the benchmark index has not moved much today, it is on track to end the week with a solid gain of 1.4%.

The tech-heavy Nasdaq (unch) has fared even better than the S&P 500 this week, having added 2.0% since last Friday. The index has benefited from a 2.2% week-to-date gain in the technology sector (-0.1%), which has outweighed modest losses among biotech names. The iShares Nasdaq Biotechnology ETF (IBB 289.21, -1.31) is down 0.5% today, tracking a 0.4% loss for the week. For its part, the broader health care sector is off 0.2% today, narrowing this week's gain to 1.1%.

Similar to stocks, Treasuries have not moved much, but they hold slim gains with the 10-yr yield down one basis point at 2.25%.

..NYSE Adv/Dec 1487/1367. ..NASDAQ Adv/Dec 1278/1447.
13:00 ET Dow -0.25 at 21082.7, Nasdaq +2.07 at 6207.3, S&P +0.33 at 2415.4

[BRIEFING.COM] The first half of Friday's session has been flat and range-bound as investors head for the exits to get a jump start on the holiday weekend. The major U.S. indices cling to their unchanged marks at midday.

Sector movement has been minimal with ten of the eleven groups hovering within 0.2% of their flat lines. The consumer staples space (+0.2%) has consistently stayed ahead of the broader market, thanks in large part to Costco's (COST 177.91, +3.18) solid performance. COST shares are up 1.8% after the company reported better than expected earnings and revenues.

The consumer discretionary space (+0.2%) trades with the consumer staples group at the top of the day's leaderboard. Ulta Beauty (ULTA 303.52, +10.51) is one of the sector's top-performers, jumping 3.5%, after beating top and bottom line estimates. On the flip side, the lightly-weighted real estate space (-0.5%) shows relative weakness.

Crude oil currently trades at its best mark of the day, up 1.5% at $49.61/bbl, which is an encouraging sign in light of yesterday's tumble. On Thursday, WTI crude dropped 4.8% after OPEC and non-OPEC nations agreed to maintain their current production levels for nine months, but stopped short of cutting production once again. However, the energy sector (unch) trades flat despite the commodity's positive performance.

In the currency market, the U.S. dollar is up 1.1% against the pound (1.2795) following a UK poll that suggests the Conservative party has lost some of its advantage against the Labour party, signaling a closer vote than previously thought. Back in April, Prime Minister Theresa May, who is the leader of the Conservative party, called for a snap election in hopes of securing a mandate to continue the UK's withdrawal process from the European Union. The election will take place on June 8.

Like the equity market, the bond market has seen little movement. U.S. Treasuries hold slim gains across the board with the benchmark 10-yr yield slipping one basis point to 2.25%.

On the data front, investors received several economic reports on Friday, including April Durable Orders, the second estimate of first quarter GDP, and the final reading of the University of Michigan Consumer Sentiment Survey for May:

  • April durable goods orders declined 0.7%, which is above the 1.8% decrease expected by the Briefing.com consensus. The prior month's reading was revised to 2.3% (from 0.7%). Excluding transportation, durable orders decreased 0.4% (Briefing.com consensus 0.4%) to follow the prior month's revised uptick of 0.8% (from -0.2%).
    • The key takeaway from the report is that nondefense capital goods orders excluding aircraft -- a proxy for business spending -- were flat for the second straight month. Shipments of those goods, which factor into GDP forecasts, declined 0.1% in April.
  • The second reading of first quarter GDP pointed to an expansion of 1.2%, while the Briefing.com consensus expected a reading of 0.8%. The second estimate of first quarter GDP Deflator came in at 2.2%, which below the Briefing.com consensus of 2.3%.
    • The key takeaway from the report is that the revision moved in the right direction, which will aid in tempering concerns about the slowdown when pitted against some otherwise rosy forecasts for the second quarter (Atlanta Fed GDPNow model at 4.1%) that should produce a more encouraging average for the first half of 2017.
  • The final reading of the University of Michigan Consumer Sentiment Index for May declined to 97.1 (Briefing.com consensus 97.5) from 97.7 in the preliminary reading.
    • The key takeaway from the report is that consumer sentiment levels continue to hover at post-election highs despite a politically partisan divide on the economic outlook.
..NYSE Adv/Dec 1509/1336. ..NASDAQ Adv/Dec 1266/1458.
12:30 ET Dow -9.15 at 21073.8, Nasdaq +2.15 at 6207.38, S&P -0.12 at 2414.95

[BRIEFING.COM] The major averages cling to their flat lines.

It's been more of the same here this afternoon: ten of eleven sectors hover within 0.2% of their unchanged marks, U.S. Treasuries are slightly higher with the benchmark 10-yr yield slipping one basis point to 2.25%, and the CBOE Volatility Index (VIX 9.89, -0.10, -1.0%) hovers at a historically-low level.

In Europe, the major bourses settled the week on a mixed note; the UK's FTSE added 0.5%, France's CAC finished flat, and Germany's DAX lost 0.2%. President Trump is in Sicily today attending a G7 summit, his first as President of the U.S. The two-day meeting will conclude Mr. Trump's nine-day overseas trip, in which visited Saudi Arabia, Israel, and Pope Francis at the Vatican. 

 

..NYSE Adv/Dec 1409/1414. ..NASDAQ Adv/Dec 1169/1568.
12:05 ET Dow -17.26 at 21065.69, Nasdaq -4.40 at 6200.83, S&P -1.63 at 2413.44

[BRIEFING.COM] The major averages still hover near their unchanged marks with the Dow showing a slim loss of 0.1%.

Home Depot (HD 155.35, -1.11) and IBM (IBM 152.32, -0.87) are the Dow's worst-performing components, losing around 0.7% apiece. IBM has had a rough five-week stretch, losing over 10.0%, after reporting a year-over-year decline in revenue for the 20th consecutive quarter back on April 18. The company is currently trading at its lowest level since early November.

However, despite IBM's struggles, the top-weighted technology sector continues to lead the stock market's 2017 campaign. Currently, the sector holds a year-to-date gain of 19.5%, which is nearly three times the S&P 500's 2017 advance of 7.8%.

..NYSE Adv/Dec 1308/1504. ..NASDAQ Adv/Dec 1082/1640.
11:30 ET Dow -7.90 at 21075.05, Nasdaq +2.61 at 6207.84, S&P +0.23 at 2415.3

[BRIEFING.COM] Range-bound action continues with the S&P 500 (unch) trading within a four-point range since the opening bell.

The U.S. Dollar Index (97.38, +0.24) has climbed 0.3% to a fresh one-week high. The greenback has added 1.2% against the pound (1.2782) following a UK poll that suggests the Conservative party has lost some of its advantage against the Labour party, signaling a closer vote than previously thought. Back in April, Prime Minister Theresa May, who is the leader of the Conservative party, called for a snap election in hopes of securing a mandate to continue the UK's withdrawal process from the European Union. The election will take place on June 8.

U.S. Treasuries have ticked up a bit following the poll with the benchmark 10-yr yield slipping one basis point to 2.25%. For the week, the 10-yr yield is higher by one basis point.

..NYSE Adv/Dec 1406/1404. ..NASDAQ Adv/Dec 1174/1514.
11:00 ET Dow -17.98 at 21064.97, Nasdaq +0.23 at 6205.46, S&P -1.09 at 2413.98

[BRIEFING.COM] The major U.S. indices trade flat this morning ahead of the extended Memorial Day weekend.

Four of eleven sectors hover in positive territory, but gains have been limited. For instance, the consumer staples sector trades at the top of the leaderboard with a modest gain of 0.3%. Costco (COST 178.32, +3.59) has underpinned the consumer staples group, jumping 2.1%, after beating top and bottom line estimates.

On the flip side, the energy sector (-0.4%) trades at the bottom of the sector standings for the second day in a row. Yesterday, the energy group tumbled 1.8% after OPEC and non-OPEC nations decided to extend the current supply cut agreement by nine months, but voted against increasing the amount of the production cut.

Similarly, WTI crude lost 4.8% on Thursday following the decision. The energy component currently trades 0.2% higher at $49.04/bbl.

..NYSE Adv/Dec 1248/1544. ..NASDAQ Adv/Dec 993/1668.
10:40 ET Dow +3.10 at 21086.05, Nasdaq +6.08 at 6211.31, S&P +1.61 at 2416.68
[BRIEFING.COM]
  • Oil prices are up modestly this morning following yesterday's post-OPEC 5% sell-off
  • July crude oil futures are +$0.28 at $49.18/barrel
  • In other energy, July natural gas is down one cent at $3.27/MMBtu
  • Precious metals have been climbing higher this morning with June gold up $10.00 at $1266.40/oz and July silver $0.13 higher at $17.33/oz
  • Looking over at base metals, July copper is $0.03 lower at $2.57/lb
..NYSE Adv/Dec 1345/1438. ..NASDAQ Adv/Dec 1007/1528.
10:05 ET Dow -5.88 at 21077.07, Nasdaq +3.38 at 6208.61, S&P +0.37 at 2415.44

[BRIEFING.COM] The major averages hover at their unchanged marks.

Just in, the final reading of the University of Michigan Consumer Sentiment Index for May declined to 97.1 (Briefing.com consensus 97.5) from 97.7 in the preliminary reading.

..NYSE Adv/Dec 1198/1476. ..NASDAQ Adv/Dec 970/1583.
09:45 ET Dow -20.78 at 21062.17, Nasdaq -6.03 at 6199.2, S&P -2.01 at 2413.06

[BRIEFING.COM] The stock market opens Friday's session slightly lower with the S&P 500 showing a loss of 0.1%.

Sector movement has been modest; all 11 groups trade within 0.3% of their unchanged marks. The top-weighted technology (-0.3%) and financials (-0.2%) spaces show relative weakness while select countercyclical groups--consumer staples (+0.1%) and utilities (+0.1%)--exhibit relative strength.

In the bond market, U.S. Treasuries have ticked down slightly; the benchmark 10-yr yield is now one basis point lower at 2.24%. Today's last economic report--the final reading of the University of Michigan Consumer Sentiment Survey for May (Briefing.com consensus 97.5)--will cross the wires shortly at 10:00 ET.

..NYSE Adv/Dec 1098/1509. ..NASDAQ Adv/Dec 934/1556.
09:20 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -2.80. Nasdaq futures vs fair value: -1.10.

The stock market will be shooting for its seventh-consecutive win on Friday. However, it will have to overcome this morning's cautious tone to get there. The S&P 500 futures trade three points, or 0.1%, below fair value.

Equity futures have hovered in negative territory for most of the overnight session, but they trimmed their modest losses a bit following this morning's batch of economic data. April durable goods orders came in better than expected (-0.7% actual vs -1.8% Briefing.com consensus) and the March reading was upwardly revised to 2.3% from 0.7%. Excluding transportation, durable orders decreased 0.4% while the Briefing.com consensus expected an uptick of 0.4%, but the March reading was revised to 0.8% from -0.2%.

Separately, the second reading of first quarter GDP pointed to an expansion of 1.2%, while the Briefing.com consensus expected a reading of 0.8%. The second estimate of first quarter GDP Deflator came in at 2.2%, which below the Briefing.com consensus of 2.3%.

U.S. Treasuries didn't move much following the economic data; the benchmark 10-yr yield hovers where it has for the majority of the morning, down two basis points at 2.24%. Like Treasuries, the CBOE Volatility Index (VIX 10.38, +0.39, +3.9%) has ticked up, pointing to a slight risk-off tone within the market.

Investors will receive one more economic report today--the final reading of the University of Michigan Consumer Sentiment Survey for May (Briefing.com consensus 97.5)--at 10:00 ET.

On the corporate front, Costco (COST 177.65, +2.92) and Ulta Beauty (ULTA 305.50, +12.46) are up 1.7% and 4.3%, respectively, in pre-market trade after both companies beat top and bottom line estimates. Conversely, GameStop (GME 21.75, -1.87) has tumbled 7.9% after disappointing domestic comparable sales overshadowed better than expected earnings and revenues.

Crude oil saw some selling pressure earlier this morning, but has since ticked up to its flat line ($48.96/bbl, +0.1%). On Thursday, the commodity tumbled nearly 5.0% after OPEC and non-OPEC nations decided to extend the current supply cut by nine months, but voted against increasing the amount of the production adjustment. Coming into Friday's session, WTI crude holds a week-to-date loss of 2.7%.

Also of note, today's trading volume is expected to be light ahead of the extended Memorial Day weekend.

08:50 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -3.00. Nasdaq futures vs fair value: -0.90.

The S&P 500 futures trade three points, or 0.1%, below fair value.

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Prime Minister Shinzo Abe is meeting with U.S. President Donald Trump today, as the weekend G7 summit in Italy begins. The yen showed strength against the dollar in overnight action, following comments from St. Louis Fed President James Bullard, who said expectations for two more rate hikes in 2017 are too aggressive. Mr. Bullard is not a voting member of the FOMC.

  • In economic data:
    • Japan's May Tokyo CPI +0.2% year-over-year (expected 0.0%; last -0.1%); Tokyo Core CPI +0.1% year-over-year (expected 0.0%; previous -0.1%). April National CPI +0.4% year-over-year, as expected (last 0.2%) and National Core CPI +0.3% year-over-year (consensus 0.4%; last 0.2%). Corporate Services Price Index +0.7% year-over-year (expected 0.9%; last 0.8%)
    • South Korea's May Consumer Confidence rose to 108 from 101
    • Singapore's April Industrial Production +0.1% month-over-month (expected -0.3%; last 5.7%); +6.7% year-over-year (consensus 6.4%; previous 11.0%)

---Equity Markets---

  • Japan's Nikkei lost 0.6%, narrowing its weekly gain to 0.5%. Nippon Sheet Glass, Nisshinbo Holdings, Komatsu, Haseko, NKSJ Holdings, TDK, Hitachi Construction, and Fanuc posted losses between 1.7% and 3.0% On the upside, Rakuten, Konami, and Softbank added between 0.8% and 1.8%.
  • Hong Kong's Hang Seng settled just above its flat line, gaining 1.8% for the week. Geely Automobile led with a gain of 1.2% while financials like Bank of East Asia, China Construction Bank, Hang Seng Bank, and ICBC advanced between 0.4% and 0.8%.
  • China's Shanghai Composite added 0.1% to end the week higher by 0.6%. Caihong Display Devices, Ginwa Enterprise, Shanghai Lingang Holdings, Langfang Development, Beijing Vantone Real Estate, and SINOPEC Oilfield Service posted gains between 4.3% and 6.2%.
  • India's Sensex rose 0.9%, extending its weekly advance to 2.8%. Tata Steel jumped 5.5% to lead the way while other growth-sensitive names like Reliance Industries, Adani Ports, Asian Paints, and Maruti Suzuki gained between 1.3% and 2.5%. Tech consultants were mixed with Infosys gaining 1.5%, Wipro adding 0.7%, and Tata Consultancy falling 1.6%.

Major European indices trade on a mostly lower note while the UK's FTSE (+0.3%) outperforms, looking to record its fifth consecutive weekly advance. President Donald Trump has returned to Italy for the G7 summit, which is taking place in Taormina, Sicily. European Commission President Jean-Claude Juncker denied press allegations claiming that President Trump made 'aggressive' comments towards Germany when talking about the country's trade surplus. On a separate note, pre-election polls from the UK indicate the Conservative party has lost some of its advantage against Labour, signaling a closer vote than previously thought. The election will take place on June 8.

  • In economic data:
    • Italy's May Business Confidence 106.9 (expected 108.0; last 107.7) and Consumer Confidence 105.4 (consensus 107.3; previous 107.4)

---Equity Markets---

  • UK's FTSE is up 0.3% amid gains in health care and consumer stocks. Hikma Pharmaceuticals, GlaxoSmithKline, Pearson, Carnival, British American Tobacco, Imperial Brands, Sainsbury, and Unilever are up between 0.5% and 1.6%. Select financials lag with RBS, Barclays, Lloyds Banking, and Standard Life down between 0.9 and 1.6%.
  • Germany's DAX trades down 0.3% with financials Commerzbank and Deutsche Bank both down near 1.5%. Automakers also weigh, as BMW, Volkswagen, and Daimler show losses between 1.0% and 1.2%.
  • France's CAC is lower by 0.5% with more than 2/3 of its components trading in the red. TechnipFMC is down 4.5% after yesterday's plunge in oil while financials like Societe Generale, Credit Agricole, and BNP Paribas have given up between 0.7% and 2.1%.
  • Italy's MIB has slid 0.6% with bank stocks like Intesa Sanpaolo, Banca Pop Emilia Romagna, UniCredit, Banco Bpm, Mediobanca, UBI Banca, and Banca Mediolanum falling between 1.1% and 2.1%.
08:34 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -3.80. Nasdaq futures vs fair value: -2.50.

The S&P 500 futures trade four points, or 0.2%, below fair value.

Just in, April durable goods orders declined 0.7%, which is above the 1.8% decrease expected by the Briefing.com consensus. The prior month's reading was revised to 2.3% (from 0.7%). Excluding transportation, durable orders decreased 0.4% (Briefing.com consensus 0.4%) to follow the prior month's revised uptick of 0.8% (from -0.2%).

Separately, the second reading of first quarter GDP pointed to an expansion of 1.2%, while the Briefing.com consensus expected a reading of 0.8%. The second estimate of first quarter GDP Deflator came in at 2.2%, which below the Briefing.com consensus of 2.3%.

08:00 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -5.90.

The stock market will be looking to complete the sweep today after going undefeated in the first four sessions of the week. However, things haven't gotten off to a great start this morning as the S&P 500 futures trade five points, or 0.2%, below fair value. Today's trading volume is expected to be light ahead of the extended Memorial Day weekend. 

Crude oil has slipped from its flat line in recent action and now trades 0.7% lower at $48.57/bbl. On Thursday, the commodity tumbled nearly 5.0% after OPEC and non-OPEC nations decided to extend the current supply cut by nine months, but voted against increasing the amount of the production adjustment. Coming into Friday's session, WTI crude holds a week-to-date loss of 3.5%.

U.S. Treasuries hover a step above their unchanged marks this morning with the benchmark 10-yr yield slipping two basis points to 2.23%. Meanwhile, gold is up 0.8% at $1,266.79/ozt.

On the data front, investors will receive several economic reports, including April Durable Orders (Briefing.com consensus -1.8%) at 8:30 ET, the second estimate of first quarter GDP (Briefing.com consensus 0.8%) also at 8:30 ET, and the final reading of the University of Michigan Consumer Sentiment Survey for May (Briefing.com consensus 97.5) at 10:00 ET.

In U.S. corporate news:

  • Costco (COST 178.00, +3.27): +1.9% after beating top and bottom line estimates.
  • Ulta Beauty (ULTA 302.50, +9.46): +3.2% after reporting better than expected earnings/revenues and raising its guidance.
  • GameStop (GME 22.20, -1.42): -6.0% despite beating top and bottom line estimates.
  • Big Lots (BIG 52.25, +3.88): +8.0% after beating bottom-line estimates and issuing above-consensus guidance. 

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei -0.6%, Hong Kong's Hang Seng unch, China's Shanghai Composite +0.1%, India's Sensex +0.9%.
    • In economic data:
      • Japan's May Tokyo CPI +0.2% year-over-year (expected 0.0%; last -0.1%); Tokyo Core CPI +0.1% year-over-year (expected 0.0%; previous -0.1%). April National CPI +0.4% year-over-year, as expected (last 0.2%) and National Core CPI +0.3% year-over-year (consensus 0.4%; last 0.2%). Corporate Services Price Index +0.7% year-over-year (expected 0.9%; last 0.8%)
      • South Korea's May Consumer Confidence rose to 108 from 101
      • Singapore's April Industrial Production +0.1% month-over-month (expected -0.3%; last 5.7%); +6.7% year-over-year (consensus 6.4%; previous 11.0%)
    • In news:
      • Japan's Prime Minister Shinzo Abe is meeting with U.S. President Donald Trump today, as the weekend G7 summit in Italy begins.
      • The yen showed strength against the dollar in overnight action, following comments from St. Louis Fed President James Bullard, who said expectations for two more rate hikes in 2017 are too aggressive. Mr. Bullard is not a voting member of the FOMC.
  • Major European indices trade on a mostly lower note while the UK's FTSE outperforms modestly, looking to record its fifth consecutive weekly advance. UK's FTSE +0.1%, Germany's DAX -0.5%, France's CAC -0.8%, Italy's MIB -0.9%.
    • In economic data:
      • Italy's May Business Confidence 106.9 (expected 108.0; last 107.7) and Consumer Confidence 105.4 (consensus 107.3; previous 107.4)
    • In news:
      • President Donald Trump has returned to Italy for the G7 summit, which is taking place in Taormina, Sicily. European Commission President Jean-Claude Juncker denied press allegations claiming that President Trump made 'aggressive' comments towards Germany when talking about the country's trade surplus.
      • Pre-election polls from the UK indicate the Conservative party has lost some of its advantage against Labour, signaling a closer vote than previously thought. The election will take place on June 8.
05:57 ET Market is Closed
[BRIEFING.COM] S&P futures vs fair value: -3.80. Nasdaq futures vs fair value: -2.40.
05:57 ET Market is Closed
[BRIEFING.COM] Nikkei...19687...-126.30...-0.60%.  Hang Seng...25639...+8.50...+0.00%.
05:57 ET Market is Closed
[BRIEFING.COM] FTSE...7528.28...+10.60...+0.10%.  DAX...12576.01...-45.70...-0.40%.
16:25 ET Dow +70.53 at 21082.95, Nasdaq +42.23 at 6205.23, S&P +10.68 at 2415.07

[BRIEFING.COM] The stock market posted its sixth-consecutive win in style on Thursday with the S&P 500 (+0.4%) settling at a record high for the second day in a row. The Nasdaq (+0.7%) also finished at an all-time high while the Dow (+0.3%) missed its record close by around 30 points. The major averages closed at the upper end of the day's trading range.

As expected, OPEC and non-OPEC nations agreed to "extend their production adjustments, which originally started 1 January 2017, for a further period of nine months, beginning 1 July 2017." However, the OPEC/non-OPEC nations will not be increasing the size of the supply cut. The latter headline was somewhat disappointing for investors since the Kuwaiti Oil Minister said just yesterday that "all options are still open", including deeper output cuts.

WTI crude tumbled 4.8% to $48.87/bbl. However, it's important to note that crude oil went on a two-week rally ahead of today's announcement. Therefore, even with today's tumble, the commodity settled $2.99/bbl, or 6.5%, above its closing level on May 9.

Like crude oil, the energy sector (-1.8%) suffered a sizable loss. The lightly-weighted materials space (-0.2%) also closed in negative territory, but the nine remaining groups finished in the green with gains between 0.2% and 0.9%. The consumer discretionary (+0.9%) and technology (+0.8%) sectors were the top-performers while the financial space (+0.2%) lagged.

Retailers helped the consumer discretionary sector finish ahead of the broader market, evidenced by the 1.0% increase in the SPDR S&P Retail ETF (XRT 40.81, +0.41). Best Buy (BBY 61.25, +10.83) led the charge, spiking 21.5%, after beating top and bottom line estimates. Large-cap names like Amazon (AMZN 993.38, +13.03) and Starbucks (SBUX 62.90, +1.01) also underpinned the consumer discretionary space, adding 1.3% and 1.6%, respectively.

For technology, top-performers included Microsoft (MSFT 69.62, +0.85), Facebook (FB 151.96, +1.92), and Alphabet (GOOGL 991.86, +14.25). The three names added between 1.2% and 1.5%. Today's performance extended the tech sector's year-to-date gain to 19.7%. For comparison, the S&P 500 currently holds a year-to-date gain of 7.9%.

The Dow Jones Transportation Average also had a solid performance, adding 1.6%. However, small-caps lagged with the Russell 2000 (+0.1%) finishing just at tick above its unchanged mark.

U.S. Treasuries finished Thursday's session flat, giving little to no additional insight into investor sentiment; the benchmark 10-yr yield settled at its unchanged mark (2.25%). However, the CBOE Volatility Index (VIX 10.00, -0.02, -0.2%) settled around the historically-low 10.00 mark for the second day in a row, signaling that the market believes near-term risks are minor.

On the data front, investors received Initial Claims, April Advance International Trade in Goods, and April Advance Wholesale Inventories on Thursday:

  • The latest weekly initial jobless claims count totaled 234,000 while the Briefing.com consensus expected a reading of 238,000. Today's tally was above the revised prior week count of 233,000 (from 232,000). As for continuing claims, they rose to 1.923 million from the revised count of 1.899 million (from 1.898 million).
    • The key takeaway from the report is that the low level of initial claims continues to support the notion that employers are generally reluctant to cut staff, which is typically the case in the face of a tight labor market.
  • The Advance report for International Trade in Goods for April showed a deficit of $67.6 billion, up from a revised deficit of $65.1 billion for March (from -$64.8 billion).
  • April Advance Wholesale Inventories showed a 0.3% decline, down from a revised 0.1% uptick in March (from 0.2%).

Tomorrow, investors will receive several economic reports, including April Durable Orders (Briefing.com consensus -1.8%) at 8:30 ET, the second estimate of first quarter GDP (Briefing.com consensus 0.8%) also at 8:30 ET, and the final reading of the University of Michigan Consumer Sentiment Survey for May (Briefing.com consensus 97.5) at 10:00 ET.

  • Nasdaq Composite +15.3% YTD
  • S&P 500 +7.9% YTD
  • Dow Jones Industrial Average +6.7% YTD
  • Russell 2000 +1.9% YTD
..NYSE Adv/Dec 1524/1399. ..NASDAQ Adv/Dec 1533/1326.

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