Market Summary
from Briefing.comIndustry Watch
Strong: Consumer Staples, Financials, Materials, Utilities
Weak: Consumer Discretionary, Health Care, Technology
Market Moving Factors
- Back-and-forth between Greece and creditors continues
- Technology sector underperforms once again
[BRIEFING.COM] The major averages ended the Tuesday session near their flat lines with the S&P 500 registering a slight gain (+0.04%) to snap its three-day skid while the Nasdaq Composite (-0.2%) settled in the red.
Equity indices slumped at the start with investor sentiment pressured by the continued lack of progress between Greece and its creditors. The ongoing uncertainty weighed on European markets, but they were able to climb off their lows into the close. Meanwhile, U.S. stocks hit their lows not long before Europe closed for the day before returning to their flat lines.
The ensuing rebound helped stocks turn positive during afternoon action, but the S&P 500 could not overtake its 100-day moving average (2,085), settling below that mark for the second consecutive day. Interestingly, this was the first time that the benchmark index registered back-to-back settlements below the 100-day average since late October.
Seven sectors registered losses, but only telecom services (-0.5%) surrendered more than 0.2%. Meanwhile, the top-weighted technology sector (-0.2%) struggled throughout the day and contributed to the underperformance of the Nasdaq. The tech sector suffered from losses among influential components like Apple (AAPL 127.42, -0.38), Google (GOOGL 542.16, -1.32), and Qualcomm (QCOM 66.84, -0.44) while high-beta chipmakers traded in mixed fashion, which was masked by a 0.1% decline in the PHLX Semiconductor Index. Micron (MU 25.19, -0.73) was a notable laggard, falling 2.8%, after Drexel Hamilton downgraded the stock to ‘Sell' from ‘Hold.'
Elsewhere among cyclical sectors, the consumer discretionary space (-0.1%) underperformed throughout the day with most homebuilders registering losses after Hovnanian (HOV 2.86, -0.31) reported disappointing results with its Chief Executive Officer saying the company had overestimated buyer demand. Shares of HOV fell 9.8% while iShares Dow Jones US Home Construction ETF (ITB 26.27, -0.11) surrendered 0.3%.
Staying on the earnings front, another discretionary component—Lululemon (LULU 68.27, +6.75)—spiked 11.0% after its one-cent beat overshadowed below-consensus guidance.
On the upside, consumer staples (+0.5%) and financials (+0.2%) ended in the lead after overtaking the energy sector (unch), which retreated from its opening high even as crude oil spiked 3.4% to $60.12/bbl. Greenback strength was not a factor as the Dollar Index ended flat.
Treasuries retreated throughout the day with the 10-yr note ending near its low to send its yield higher by two basis points to 2.41%.
Once again, today's participation was below average with roughly 700 million shares changing hands at the NYSE floor.
Economic data included Wholesale Inventories and JOLTS:
Equity indices slumped at the start with investor sentiment pressured by the continued lack of progress between Greece and its creditors. The ongoing uncertainty weighed on European markets, but they were able to climb off their lows into the close. Meanwhile, U.S. stocks hit their lows not long before Europe closed for the day before returning to their flat lines.
The ensuing rebound helped stocks turn positive during afternoon action, but the S&P 500 could not overtake its 100-day moving average (2,085), settling below that mark for the second consecutive day. Interestingly, this was the first time that the benchmark index registered back-to-back settlements below the 100-day average since late October.
Seven sectors registered losses, but only telecom services (-0.5%) surrendered more than 0.2%. Meanwhile, the top-weighted technology sector (-0.2%) struggled throughout the day and contributed to the underperformance of the Nasdaq. The tech sector suffered from losses among influential components like Apple (AAPL 127.42, -0.38), Google (GOOGL 542.16, -1.32), and Qualcomm (QCOM 66.84, -0.44) while high-beta chipmakers traded in mixed fashion, which was masked by a 0.1% decline in the PHLX Semiconductor Index. Micron (MU 25.19, -0.73) was a notable laggard, falling 2.8%, after Drexel Hamilton downgraded the stock to ‘Sell' from ‘Hold.'
Elsewhere among cyclical sectors, the consumer discretionary space (-0.1%) underperformed throughout the day with most homebuilders registering losses after Hovnanian (HOV 2.86, -0.31) reported disappointing results with its Chief Executive Officer saying the company had overestimated buyer demand. Shares of HOV fell 9.8% while iShares Dow Jones US Home Construction ETF (ITB 26.27, -0.11) surrendered 0.3%.
Staying on the earnings front, another discretionary component—Lululemon (LULU 68.27, +6.75)—spiked 11.0% after its one-cent beat overshadowed below-consensus guidance.
On the upside, consumer staples (+0.5%) and financials (+0.2%) ended in the lead after overtaking the energy sector (unch), which retreated from its opening high even as crude oil spiked 3.4% to $60.12/bbl. Greenback strength was not a factor as the Dollar Index ended flat.
Treasuries retreated throughout the day with the 10-yr note ending near its low to send its yield higher by two basis points to 2.41%.
Once again, today's participation was below average with roughly 700 million shares changing hands at the NYSE floor.
Economic data included Wholesale Inventories and JOLTS:
- Wholesale inventories increased 0.4% in April following an upwardly revised 0.2% gain (from 0.1%) in March while the Briefing.com consensus expected an increase of 0.2%
- Durable goods inventories increased 0.1% in April, down from a 0.5% increase in March
- Gains in automotive (1.8%) and machinery inventories (0.7%) offset declines in professional equipment (-2.1%) and metals (-1.2%) inventories
- Nondurable goods inventories increased 0.8% in April after declining 0.3% in March with much of the increase resulting from higher petroleum and gasoline prices, which helped boost petroleum inventories by 2.3% in April
- Durable goods inventories increased 0.1% in April, down from a 0.5% increase in March
- The April Job Openings and Labor Turnover Survey showed that job openings increased to 5.376 million from a revised rate of 5.109 million (from 4.994 million)
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Economic Data
from Briefing.com| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 09 | 10:00 | Wholesale Inventories | Apr | 0.4% | 0.2% | 0.2% | 0.2% | 0.1% |
| Jun 09 | 10:00 | JOLTS - Job Openings | Apr | 5.367M | NA | NA | 5.109M | 4.994M |
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Technical Update
DOW JONES INDUSTRIAL AVERAGE17764.04 -2.51 (-0.01%)
Volume: 90.55 Mil below average of 96.79 Mil
Range: 17714.97 - 17817.83
NASDAQ COMPOSITE
5013.870117 -7.76 (-0.15%)
Volume: 1754.34 Mil below average of 1758.45 Mil
Range: 4974.620117 - 5027.02002
S&P500 INDEX
2080.15 +0.87 (+0.04%)
Volume: 488.82 Mil below average of 520.11 Mil
Range: 2072.14 - 2085.62
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Market Internal
NYSE :Lower than average volume @ 718M vs 733.572M
Decliners outpaced Advancers(adv/dec): 1084M/1978M
New lows outpaced highs(high/low): 49/149
NASDAQ :
Lower than average volume @ 1744.6M vs 1758.308M
Decliners outpaced Advancers(adv/dec): 1116M/1670M
New highs outpaced low(high/low): 93/54
Decliners outpaced Advancers by 1.66 to 1 on lower volumes 2462.6 ( -1.18%) than avg 2492 (+0.25%)
VOLATILITY S&P500 (VIX) :
14.47 -0.82(-5.36%)
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Bonds, Currencies & Commodities
from Briefing.comBonds
Government Debt Falls in Broad-Based Decline- Treasuries traded down today both before and after the release of economic data at 10:00 ET that surprised on the upside (Wholesale Inventories and JOLTS). European sovereigns were also weak, failing to produce a meaningful bounce despite continued uncertainty surrounding Greece's membership in the eurozone
- Yield Check:
- 2-yr: +3 bps to 0.71%
- 5-yr: +3 bps to 1.74%
- 10-yr: +2 bps to 2.41%
- 30-yr: +3 bps to 3.15%
- News:
- Eurozone GDP grew 0.4% q/q in Q1 2015
- China's Consumer Price Index grew only 1.2% y/y for the month of May, falling short of expectations and the 1.5% increase in April
- Wholesale Inventories rose 0.4% in April after an upwardly revised 0.2% gain (from 0.1%) in March. The Briefing.com consensus called for wholesale inventories to increase 0.2%
- Wholesale sales increased 1.6% in April after declining 0.3% in March
- JOLTS - Job Openings were at 5.367 in April, increasing from an upwardly revised 5.109M in March
- This data point adds to the strong picture of the job market that we saw in May's Employment Situation Report
- The $24 billion 3-year note auction was met with solid demand. The auction neither tailed nor stopped-through, suggesting demand relatively balanced with supply
- High yield: 1.125%
- Bid-to-cover: 3.33
- Indirect bid: 50.7%
- Direct bid: 9.67%
- The mood between Greece and its creditors is deteriorating. Jean-Claude Juncker, president of the European Commission, is said to have told colleagues that meeting with Greek Prime Minister Alexis Tsipras would be a "waste of time" and that it would be "better to meet with the Latin Americans", according Yahoo Finance U.K.
- Commodities:
- WTI crude rallied 3.11% to $59.95/bbl.
- Gold: +0.28% to $1,176.90/troy oz.
- Copper: +0.56% to $2.7135/lb.
- Natural gas: +5.03% to $2.84/million BTU's
Currencies
Dollar Falls Despite Positive Data- Strong Wholesale Inventories for April and a higher-than-expected April JOLTS failed to keep the U.S. Dollar Index in the green today. The gravitational force of normalizing European sovereign debt yields is pulling money east across the Atlantic and even a stellar May employment report and two positive economic surprises from the U.S. today failed to keep the greenback up
- U.S. Dollar Index: -0.19% to 95.12
- EUR/USD: +0.09% to $1.1288
- Eurozone GDP for Q1 2015 was +0.4% q/q, which was good enough to beat both the United States and the U.K. for that quarter
- Industrial Production for France, Italy, and the U.K. will be reported overnight
- USD/JPY: -0.21% to 124.36
- Household Confidence fell to 41.4 in May, lower than expectations and the prior reading of 41.5
- USD/CHF: +0.33% to 93.07
- The Swiss CPI rose 0.2% m/m in May which was a larger rise than expected. Swiss unemployment beat expectations, falling to 3.2% in May
- USD/CAD: -0.68% to 1.2329
- GBP/USD: +0.26% to $1.5381
- The U.K.'s trade deficit narrowed more than expected in April to 8.56 bln versus 10.7 bln in March
- AUD/USD: -0.07% to $0.7679
- NZD/USD: +0.03% to $0.7136
Commodities
- The dollar index closed moderately lower, after trading in a narrow range around the unchanged mark for most of the session.
- The index offered inconsistent and slight pressure/support for commodities, finishing down 0.1% to 95.19
- Crude traded flat overnight, but finished positive on a strong, all-day rally driven by EIA US production forecasts
- July WTI closed at +3.4% to $60.12/barrel
- Natural gas held its earlier gains into the close, after lifting in early morning price action on intermediate term forecasts for warm national weather
- Nat gas futures closed up 4.8% to $2.84/MMBtu
- Precious metals saw a mixed close, as movements in the dollar failed to provide a definitive price trend for both gold or silver. August gold was +0.4% to $1177.60/oz and July silver was flat at $15.96/oz
- Copper closed modestly positive at +0.4% to $2.71/lb
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Preview: Wednesday, 10 Jun 2015
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 10 | 07:00 | MBA Mortgage Index | 06/06 | NA | NA | -7.6% | ||
| Jun 10 | 10:30 | Crude Inventories | 06/06 | NA | NA | -1.948M | ||
| Jun 10 | 14:00 | Treasury Budget | May | -$85.0B | -$85.0B | -$130.0B |
No comments:
Post a Comment