US stocks close flat after Fed's hawkish tilt

Benchmark US indices closed flat on Thursday, August 19, a day after Fed minutes revealed broad consensus on pulling back monetary stimuli but still to set a specific start date for the withdrawal.

The S&P 500 was up 0.13% to 4,405.80. The Dow Jones fell 0.19% to 34,894.12. The NASDAQ Composite rose 0.11% to 14,541.79, and the small-cap Russell 2000 was down 1.22% to 2,132.42.

The Federal Reserve's July 27-28 meeting minutes were published on Wednesday afternoon, leading to a considerable pullback in the stock market. The revelations dealt a blow to the hopes of those hoping to capitalize on low-interest rates. The effects were also felt in the global markets.

Investors also weighed the threat from the delta virus that could potentially throw the economy into another downturn. In addition, the Labor Department's latest data on Thursday showed that the number of Americans filing for jobless benefits claims dropped to a 17-month low last week. The figures fell to 348,000 in the week ended August 14, more than a 50% decline since January 2021.

However, strong quarterly results of companies kept the spirits high in the stock market. Technology and healthcare stocks on the S&P 500 saw notable gains. Five of the eleven sectors of the index stayed in the green. Energy and basic material stocks were the bottom movers.

Shares of retailer Bath & Body Works Inc. (BBWI) jumped 9.95% in intraday trading after the company reported strong quarterly earnings, topping analysts' forecasts. Its net sales rose 43% YoY to US$3.3 billion, while its gross profit came in at US$1.4 billion.

Stocks of retail store operator Macy's Inc. (M) surged 17.99% after reporting strong Q2 results. The company's net sales came in at US$5.6 billion, compared to US$3.5 billion in the same quarter of the previous year. Its net income was US$345 million, or US$1.08 per share.

Kohl's Corporation (KSS) posted a 30.5% revenue growth YoY to US$4.4 billion. Its net income was US$382 million or US$2.48 per diluted share. The KSS stock ticked up 6.09% in intraday trading.

Meanwhile, the Toyota Motor Corporation (TM) shares tumbled 4.05% after it announced a production cut by 40% in September due to the semiconductor shortage.

In the technology sector, Microsoft Corporation (MSFT) gained 2.14%, NVIDIA Corporation (NVDA) increased by 4.44%, and ASML Holdings NV gained 1.38%. Adobe Inc. (ADBE) and Cisco Systems Inc. (CSCO) advanced 2.08% and 3.69%, respectively.

In the energy sector, Exxon Mobil Corporation (XOM) declined 3.37%, Chevron Corporation (CVX) fell 2.63%, and PetroChina Company Limited (PTR) dropped 3.46%. TotalEnergies SE (TTE) and Enbridge Inc. (ENB) plunged 2.30% and 2.41%.

In material stocks, BHP Group (BHP) declined 3.89%, Rio Tinto Group (RIO) fell 3.25%, and Vale S.A. (VALE) ticked down 6.29%. Southern Copper Corporation (SCCO) and Dow Inc. (DOW) tumbled 2.80% and 2.04%.

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Top Gainers

Top performers on S&P 500 included Bath & Body Works Inc (10.49%), Synopsys Inc (8.73%), Netflix Inc (4.19%), Cboe Global Markets Inc (4.07%). On NASDAQ, top performers were Sonnet Biotherapeutics Holdings Inc (63.74%), Sonoma Pharmaceuticals Inc (50.65%), Dlocal Ltd (26.68%), China Liberal Education Holdings Ltd (22.71%). On Dow Jones, Cisco Systems Inc (3.84%), UnitedHealth Group Inc (2.53%), Microsoft Corp (2.08%), Procter & Gamble Co (1.18%) were the leaders.

Top Losers

Top laggards on S&P 500 included Illumina Inc (-7.88%), Moderna Inc (-5.84%), Occidental Petroleum Corp (-5.80%), CF Industries Holdings Inc (-5.31%). On NASDAQ, PharmaCyte Biotech Inc (-64.85%), Ontrak Inc (-44.51%), OLB Group Inc (-37.82%), ATIF Holdings Ltd (-34.58%). On Dow Jones, Boeing Co (-3.12%), Caterpillar Inc (-2.55%), Chevron Corp (-2.49%), Dow Inc (-2.15%) were the laggards.

Volume Movers

Top volume movers were Apple Inc (15.85M), Bank of America Corp (15.24M), NVIDIA Corp (13.00M), Pfizer Inc (12.20M), Cisco Systems Inc (11.43M), Advanced Micro Devices Inc (10.25M), Ford Motor Co (9.95M), Microsoft Corp (8.64M), Sonnet Biotherapeutics Holdings Inc (24.96M), Sonoma Pharmaceuticals Inc (17.44M).

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Futures & Commodities

Gold futures were down 0.11% to US$1,782.45 per ounce. Silver decreased by 0.86% to US$23.220 per ounce, while copper fell 1.78% to US$4.0465.

Brent oil futures increased by 0.08% to US$66.56 per barrel and WTI crude was down 2.33% to US$63.69.

Bond Market

The 30-year Treasury bond yields was down 2.06% to 1.874, while the 10-year bond yields ticked down 2.20% to 1.245.

US Dollar Futures Index increased by 0.47% to US$93.585.