Stock Market News for Sep 1, 2021
Benchmarks closed in the red on Tuesday as investors await jobs data for August scheduled for release on Sep 3 to trace when the Federal Reserve may b...
Benchmarks closed in the red on Tuesday as investors await jobs data for August scheduled for release on Sep 3 to trace when the Federal Reserve may begin tapering its bond purchases. The Dow slowed its monthly gain in August, but the S&P 500 hit its longest winning streak since 2017.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 39.11 points, or 0.1%, to close at 35,360.73. Walgreens Boots Alliance, Inc. WBA was among the blue-chip index’s biggest gainer climbing 4.4% on Tuesday. However, the decline in bigwigs like NIKE, Inc. NKE and Chevron Corporation CVX of more than 1.6% weighed on the index.
The S&P 500 dipped 6.11 points, or 0.1%, to end the session at 4,522.68 on Tuesday. Of the 11 major sectors of the broader index, seven ended in the red, led by 0.7% and 0.6% decline in energy and technology sectors, respectively. Among the gainers was the real estate sector that closed 0.6% higher for the session.
The Nasdaq Composite Index closed at 15,259.24, after declining 6.65 points, or less than 0.1%. The decline in tech stocks weighed on the index. Zoom Video Communications, Inc. ZM was among the highest decliner, sliding 16.7% after the company delivered a tepid third-quarter outlook late on Monday. However, the video conferencing company reported second-quarter fiscal 2022 earnings of $1.36 per share beating the Zacks Consensus Estimate by $1.16. Zoom carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Tuesday, the fear-gauge CBOE Volatility Index (VIX) increased 1.8%, to close at 16.48. The S&P 500 posted 43 new 52-week highs and one new low, while the Nasdaq Composite recorded 119 new highs and 23 new lows. A total of 9.84 billion shares were traded yesterday, higher than the last 20-session average of 8.98 billion.
Investors Await Jobs Data for Clues
On Tuesday, the S&P 500 and the Nasdaq tumbled after hitting all-time highs on the previous day. Investors held back on the last day of August, waiting for US jobs data scheduled for release on Sep 3 to find pointers as to when the Federal Reserve may begin tapering its $120 billion of monthly bond purchases which have helped to support markets during the pandemic. The decline in energy and tech stocks weight on major indexes yesterday. Additionally, heightened concerns over Covid-19’s delta variant and inflationary pressure are also impacting the consumers.
Consumer Confidence Dampens in August
The Conference Board reported yesterday that its Consumer Confidence Index slipped to 113.8 for August, much lower than the consensus estimate of 123.1. The report also stated that July’s consumer confidence was downwardly revised to 125.1. August’s decline puts consumer confidence at a six-month low, due to the rapid spread of the delta variant and surge in commodity prices, especially gasoline and grocery. The sub-indexes, Present Situation Index, which is based on consumers’ assessment of current business and labor market conditions, fell to 147.3 from 157.2 in July. Meanwhile the consumers’ short-term outlook for income, business, and labor market condition, Expectations Index slid from 103.8 in July to 91.4 in the last month.
Economic Data Log
In a separate release, the Institute of Supply Management (ISM) reported its Chicago Purchasing Managers Index (PMI) for August that declined to 66.8 from 73.4 in the prior month. The report showed deteriorating business conditions across Illinois, Indiana and Michigan and came in lower than the consensus estimate of 67.7.
Additionally, the S&P CoreLogic Case-Shiller Home Price Index showed that home prices increased 18.6% from a year ago in June, the third consecutive month of record growth. For the month of July, Case-Shiller Home Prices for 20-city index gained 2% and for 10-city its climbed 1.8%. The largest price gains were recorded in Phoenix, San Diego and Seattle, with Chicago being the only exception.
For the month of August, the Dow, the S&P 500 and the Nasdaq rose 1.2%, 2.9% and 4%, respectively. The better-than-expected second-quarter corporate earnings report, an array of positive economic data and Fed’s dovish stance on monetary policy helped benchmarks rally last month. The delta variant of coronavirus has raised concerns about the path for the economic recovery in August, despite that the S&P 500 had a strong run, marking its seventh-straight month of gains standing just below all-time highs. The tech-laden Nasdaq recorded its third-straight winning month, given the rally in big tech and stocks benefitting from economic reopening.
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Chevron Corporation (CVX): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
lululemon athletica inc. (LULU): Free Stock Analysis Report
NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report
Walgreens Boots Alliance, Inc. (WBA): Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report
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