The stock market is trading mostly lower amid a lack of buying conviction. The S&P 500 (-0.4%) and Dow Jones Industrial Average (-0.3%) are showing modest declines while the Nasdaq Composite (-0.8%) and Russell 2000 (-1.0%) underperform with sharper declines.
The lack of conviction comes as S&P 500 slips further below key technical levels, interest rates continue to push higher, a big earnings week lays ahead, the Fed prepares to tighten policy more aggressively, and growth concerns linger.
The growth stocks are leading the decline, presumably because the 10-yr yield is up three basis points to 2.86%, although the benchmark yield flirted with 2.88% overnight. The Russell 3000 Growth Index is down 0.9%, versus a 0.3% decline for the Russell 3000 Value Index.
The S&P 500 information technology (-0.3%), communication services (-0.9%), and consumer discretionary (-0.5%) sectors are among today’s more influential laggards amid softness in the mega-caps. The health care sector (-1.1%) is the weakest sector amid particular weakness in its biotechnology components.
Conversely, the energy sector (+1.7%) is rising in tandem with oil prices ($108.79, +1.86, +1.7%) while the financials (+0.2%) and utilities (+0.2%) sectors cling onto small gains.
Bank of America ( BAC 38.85, +1.28, +3.4%) is providing a lift for the financials sector after topping EPS estimates and observing a strong recovery in travel, entertainment, and restaurant spending. Charles Schwab ( SCHW 75.50, -7.25, -8.8%), however, is down 9% after missing top and bottom-line estimates.
In other developments, Twitter ( TWTR 46.64, +1.56, +3.5%) adopted a “poison pill” plan in response to takeover pressure, China’s DiDi Global ( DIDI 2.02, -0.44, -27.9%) has plunged 28% at the NYSE amid underwhelming earnings news, and the NAHB Housing Market Index for April decreased to 77 (Briefing.com consensus 77) from 79 in March.