Stocks Closed Mixed, Ends With Monthly Gains
4:09 pm Tuesday, August 31st, 2021
Stocks fluctuated near a record as traders assessed whether lofty valuations can withstand the unwinding of pandemic-era stimulus.
The lack of trading conviction is best manifested in the fact that no sector was up or down than more than 0.5%. The communication services sector (+0.4%) was the relative outperformer, while the information technology sector (-0.3%) was the relative underperformer. Overall price action has been relatively tight-ranged.
There is a bit of a preference towards value stocks, and it’s arguably not because of the latest economic data. The Russell 1000 Value Index is up 0.2%, while the Russell 1000 Growth Index is down 0.2%.
Briefly, China reported relatively disappointing manufacturing and services PMI data for August, the Conference Board’s Consumer Confidence Index decreased to 113.8 in August (consensus 123.0) from 128.9 in July, and the Chicago PMI for August decreased to 66.8 (consensus 68.0) from 73.4 in July.
Growth stocks might be underperforming because of the horrible reaction to Zoom Video’s (ZM) earnings report, which included mixed quarterly guidance. ZM shares were down 16.50%.
In other corporate news, a study showed Moderna’s (MRNA) COVID-19 vaccine produced twice as many antibodies than Pfizer’s (PFE) vaccine, and Taiwan Semi (TSM) is reportedly in discussions with suppliers to lower prices by 15% next year.
Looking at the Treasury market, the 10-yr yield was up one basis point to 1.30% after trading at 1.27% overnight. The U.S. Dollar Index was little changed at 92.69.
The Conference Board’s Consumer Confidence Index fell to 113.8 in August (consensus 123.0) from a revised 125.1 (from 129.1) in July. The August drop sent the Index to its lowest level since February.
The Chicago PMI for August decreased to 66.8 (consensus 68.0) following an unrevised 73.4 reading in July.
