Market Summary
from Briefing.comIndustry Watch
Strong: Consumer Discretionary, Health Care, Industrials, Utilities
Weak: Consumer Staples, Energy, Technology
Market Moving Factors
- Back-and-forth between Greece and creditors continues
- Technology sector underperforms once again
[BRIEFING.COM] The major averages ended Thursday on a modestly higher note with the S&P 500 (+0.2%) posting its third consecutive advance.
Equity indices rallied out of the gate, hitting their highs during the opening hour of action; however, the market was knocked back into the middle of its range after it was reported that International Monetary Fund representatives left Brussels for Washington due to insufficient progress between Greece and the creditors. Furthermore, IMF spokesman Gerry Rice stressed the continued presence of major differences, saying, "We are well away from an agreement."
The reports from Europe short-circuited the market's advance, but the S&P 500 remained above its 50-day moving average (2,102), which is a level the index reclaimed yesterday when Bloomberg reported that a staggered deal may be in the cards for Greece.
Seven of ten sectors registered gains while consumer staples (-0.1%) and energy (-0.4%) spent the day in the red. In addition, technology (-0.1%) turned negative during the afternoon.
The energy sector struggled as crude oil fell 1.0% to $60.74/bbl with dollar strength exerting pressure on the energy component. The Dollar Index (94.88, +0.24) climbed 0.3% with the greenback adding 0.4% against the euro (1.1274).
On the upside, countercyclical groups fared better than their growth-sensitive counterparts with health care (+0.5%), telecom services (+0.6%), and utilities (+0.7%) finishing ahead of the broader market. Large cap health care components outperformed from the start while biotechnology gathered strength as the day wore on. The iShares Nasdaq Biotechnology ETF (IBB 368.07, +2.24) gained 0.6%.
Over on the cyclical side, the industrial sector (+0.4%) ended ahead of its peers thanks to strength among transport stocks. The Dow Jones Transportation Average climbed 1.1% to extend its June advance to 1.8%. The broad-based advance was paced by railroad names with CSX (CSX 34.97, +1.00) rising 2.9%.
Elsewhere, the top-weighted technology sector (-0.1%) lagged throughout the day, which prevented the market from revisiting its early high. In general, large sector members fared relatively well, but Apple (APPL 128.59, -0.29), Google (GOOGL 550.04, -2.56), and Microsoft (MSFT 46.44, -0.17) posted losses while high-beta chipmakers also lagged with the PHLX Semiconductor Index shedding 0.1%.
Although the tech sector kept a lid on the market in the afternoon, a modest gain in the financial sector (+0.3%) prevented the S&P 500 from turning negative. Thanks to today's gain, the financial sector is now up 2.2% since the end of May.
Interestingly, financials outperformed today even as Treasuries spiked, dropping the benchmark 10-yr yield ten basis points to 2.39%.
Today's participation was in-line with yesterday's session as roughly 770 million shares changed hands at the NYSE floor.
Economic data included Initial Claims, Retail Sales, Import/Export Prices, and Business Inventories:
Equity indices rallied out of the gate, hitting their highs during the opening hour of action; however, the market was knocked back into the middle of its range after it was reported that International Monetary Fund representatives left Brussels for Washington due to insufficient progress between Greece and the creditors. Furthermore, IMF spokesman Gerry Rice stressed the continued presence of major differences, saying, "We are well away from an agreement."
The reports from Europe short-circuited the market's advance, but the S&P 500 remained above its 50-day moving average (2,102), which is a level the index reclaimed yesterday when Bloomberg reported that a staggered deal may be in the cards for Greece.
Seven of ten sectors registered gains while consumer staples (-0.1%) and energy (-0.4%) spent the day in the red. In addition, technology (-0.1%) turned negative during the afternoon.
The energy sector struggled as crude oil fell 1.0% to $60.74/bbl with dollar strength exerting pressure on the energy component. The Dollar Index (94.88, +0.24) climbed 0.3% with the greenback adding 0.4% against the euro (1.1274).
On the upside, countercyclical groups fared better than their growth-sensitive counterparts with health care (+0.5%), telecom services (+0.6%), and utilities (+0.7%) finishing ahead of the broader market. Large cap health care components outperformed from the start while biotechnology gathered strength as the day wore on. The iShares Nasdaq Biotechnology ETF (IBB 368.07, +2.24) gained 0.6%.
Over on the cyclical side, the industrial sector (+0.4%) ended ahead of its peers thanks to strength among transport stocks. The Dow Jones Transportation Average climbed 1.1% to extend its June advance to 1.8%. The broad-based advance was paced by railroad names with CSX (CSX 34.97, +1.00) rising 2.9%.
Elsewhere, the top-weighted technology sector (-0.1%) lagged throughout the day, which prevented the market from revisiting its early high. In general, large sector members fared relatively well, but Apple (APPL 128.59, -0.29), Google (GOOGL 550.04, -2.56), and Microsoft (MSFT 46.44, -0.17) posted losses while high-beta chipmakers also lagged with the PHLX Semiconductor Index shedding 0.1%.
Although the tech sector kept a lid on the market in the afternoon, a modest gain in the financial sector (+0.3%) prevented the S&P 500 from turning negative. Thanks to today's gain, the financial sector is now up 2.2% since the end of May.
Interestingly, financials outperformed today even as Treasuries spiked, dropping the benchmark 10-yr yield ten basis points to 2.39%.
Today's participation was in-line with yesterday's session as roughly 770 million shares changed hands at the NYSE floor.
Economic data included Initial Claims, Retail Sales, Import/Export Prices, and Business Inventories:
- Weekly initial claims increased to 279,000 from an upwardly revised 277,000 (from 276,000) while the Briefing.com consensus expected an increase to 278,000
- The four-week moving average inched up to 278,500 from 275,000
- The continuing claims level increased to 2.265 million from an upwardly revised 2.204 million (from 2.196 mln) while the consensus expected a reading of 2.200 million
- Retail sales increased 1.2% in May after increasing an upwardly revised 0.2% (from 0.0%) in April while the Briefing.com consensus expected an increase of 1.1%
- As expected from the auto manufacturer reports, auto sales were strong in May, increasing 2.0%
- Excluding autos, retail sales increased 1.0% in May after increasing an unrevised 0.1% in April while the consensus expected an increase of 0.7%
- Export prices, excluding agriculture, increased 0.7% in May after decreasing 0.7% in the prior reading
- Excluding oil, import prices were unchanged, which followed last month's 0.4% decline
- Business inventories increased 0.4% in April after increasing an unrevised 0.1% increase in March while the Briefing.com Consensus expected an increase of 0.2%
- The inventory changes from manufacturers (0.1%) and merchant wholesalers (0.4%) were known prior to the release. The only new information was that retailer inventories increased by 0.8% in April after increasing 0.3% in March
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Economic Data
from Briefing.com| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 11 | 08:30 | Initial Claims | 06/06 | 279K | 275K | 278K | 277K | 276K |
| Jun 11 | 08:30 | Continuing Claims | 05/30 | 2265K | 2222K | 2200K | 2204K | 2196K |
| Jun 11 | 08:30 | Retail Sales | May | 1.2% | 1.1% | 1.1% | 0.2% | 0.0% |
| Jun 11 | 08:30 | Retail Sales ex-auto | May | 1.0% | 0.5% | 0.7% | 0.1% | |
| Jun 11 | 08:30 | Export Prices ex-ag. | May | 0.7% | NA | NA | -0.7% | |
| Jun 11 | 08:30 | Import Prices ex-oil | May | 0.0% | NA | NA | -0.3% | -0.4% |
| Jun 11 | 10:00 | Business Inventories | Apr | 0.4% | 0.2% | 0.2% | 0.1% | |
| Jun 11 | 10:30 | Natural Gas Inventories | 06/06 | 111 bcf | NA | NA | 132 bcf |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE18039.37 +38.97 (+0.22%)
Volume: 89.49 Mil below average of 96.39 Mil
Range: 18001.27 - 18109.77
NASDAQ COMPOSITE
5051.100098 -31.41 (-0.62%)
Volume: 1428.90 Mil below average of 1745.55 Mil
Range: 5043.240234 - 5067.959961
S&P500 INDEX
2108.86 +3.66 (+0.17%)
Volume: 529.77 Mil above average of 519.41 Mil
Range: 2106.24 - 2115.02
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Market Internal
NYSE :Higher than average volume @ 785.3M vs 730.718M
Advancers outpaced Decliners(adv/dec): 1878M/1213M
New highs outpaced low(high/low): 100/85
NASDAQ :
Lower than average volume @ 1600M vs 1757.606M
Advancers outpaced Decliners(adv/dec): 1430M/1360M
New highs outpaced low(high/low): 127/30
Advancers outpaced Decliners by 1.29 to 1 on lower volumes 2385.3 ( -4.14%) than avg 2488 (-0.16%)
VOLATILITY S&P500 (VIX) :
12.85 -0.37(-2.80%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Treasuries Rally With Long End Leading
- The Treasury complex reminded investors that it can trade in both directions today as the yield curve flattened and all maturities climbed despite better-than-expected economic data
- Yield Check:
- 2-yr: -1 bp to 0.72%
- 5-yr: -6 bps to 1.73%
- 10-yr: -10 bps to 2.39%
- 30-yr: -11 bps to 3.10%
- News:
- Retail Sales rose a better-than-expected 1.2% in May. The Briefing.com consensus called for +1.1% and the reading for April was +0.2% (revised from 0.0%)
- The details in the retail sales report were impressive. With the exception of a minor decline in health and personal care stores (-0.3%), every retail sector showed positive sales growth
- Excluding autos, retail sales increased 1.0% in May after increasing an unrevised 0.1% in April. The consensus expected these sales to increase 0.7%
- Initial Jobless Claims increased to 279K for the week ending June 6 from an upwardly revised 277K (from 276K) for the week ending May 30. The Briefing.com consensus expected the initial claims level to increase to 278K
- Continuing Claims rose to 2.265 mln for the week ending May 30 from an upwardly revised 2.204 mln (from 2.196 mln) for the week ending May 23. The consensus pegged the continuing claims level at 2.200 mln
- The IMF's technical team in Brussels left that city to return to Washington. A spokesman said that there are still "major differences" between Greece's demands and the IMF's position
- The announcement of the withdrawal sent global equities lower from strong gains earlier in the session
- Export Prices excluding agricultural products increased 0.7% in May versus a 0.7% decline in April
- Import Prices excluding oil were flat in May after falling 0.3% in April
- Business Inventories for April blew out expectations, growing 0.4% versus a consensus estimate of 0.2% and and 0.1% growth in March
- The $13 billion 30-year bond auction (reopening) was met with strong demand. The auction stopped through more than 2 basis points
- Results:
- High yield: 3.138%
- Bid-to-cover: 2.54
- Indirect bid: 52%
- Results:
- Retail Sales rose a better-than-expected 1.2% in May. The Briefing.com consensus called for +1.1% and the reading for April was +0.2% (revised from 0.0%)
- Commodities:
- WTI crude: -1.29% to $60.64/bbl
- Gold: -0.43% to $1,181.4/troy oz.
- Copper: -2.68% to $2.6735/lb.
Currencies
Dollar Index Gains, But Ends off of Highs- The dollar gained against all of the majors today, but the gains came during the European session, and the index failed to push higher after the May Retail Sales report
- EUR/USD: -0.49% to $1.1263
- The French Harmonized Index of Consumer Prices rose 0.2% in May, in line with estimates but more than the 0.1% bump in April
- French Non-Farm Payrolls surprised on the upside, remaining flat in Q1 (q/q) versus a fall of 0.1% in Q4 2014
- USD/JPY: +0.46% to 123.41
- The pair is still digesting the remarks BoJ Governor Haruhiko Kuroda made on Wednesday, where he said that the yen is unlikely to weaken further in real effective terms
- The yen is rallying at the pixel as U.S. Treasuries continue higher and reduce the spread between Treasuries and JGB's
- USD/CHF: +0.25% to 0.9348
- GBP/USD: +0.13% to $1.5519
- NZD/USD: -0.63% to $0.7006
- The Kiwi got torched after the RBNZ cut its policy rate by 25 bps and indicated another cut may be on the way. The central bank referred to weak demand and low inflation in justifying the cut
- AUD/USD: +0.23% to $0.7754
- Australia's economy added 42K jobs in May, well above the consensus, but the Aussie sunk nevertheless in sympathy with the Kiwi
- USD/CAD: +0.11% to 1.2287
Commodities
Dollar Holds AM Econ Data Gains; Energy Moderately Down- The dollar finished positive on the session, influenced largely by sentiment surrounding the release of U.S. unemployment and retail sale data this morning.
- The index saw a brief sell-off on the news' release, but quickly regained prior levels, and is now holding gains of 0.4% to end at 94.98
- Crude traded in the red all day; bottoming mid-morning, then gradually climbing higher all session to finish at moderate losses.
- Overall, the dollar's early strength and over-supply fears overwhelmed bearish sentiment for WTI, which closed -1% to $60.74/barrel
- Natural gas inventory data was released mid-morning, showing a build of 111 bcf (on-par with expectations), which had little initial effect on the commodity
- As the session progressed however, negative sentiment built surrounding the report and put selling pressure on the July contract, which ended the day down 2.1% to $2.83/MMBtu
- Copper extended morning losses, driven primarily by economic data out overnight from China. Copper caught some support near the $2.66 level however, and ended down 2.9% to $2.67/lb
- Precious metals traded largely on the dollar, whose strength weighed heaviest on gold. August gold closed -0.7% to $1180/oz while July silver closed -0.1% to $15.95/oz
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Preview: Friday, 12 Jun 2015
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 12 | 08:30 | PPI | May | 0.5% | 0.4% | -0.4% | ||
| Jun 12 | 08:30 | Core PPI | May | 0.2% | 0.1% | -0.2% | ||
| Jun 12 | 10:00 | Mich Sentiment | Jun | 92.5 | 91.5 | 90.7 |
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