Market Summary
from Briefing.comIndustry Watch
Strong: Energy, Financials, Industrials, Technology
Weak:
Market Moving Factors
- Back-and-forth between Greece and creditors continues
- Technology sector underperforms once again
[BRIEFING.COM] After struggling with its 100-day moving average (2,086) on Tuesday, the S&P 500 wasted no time charging back above that mark on Wednesday. The benchmark index gained 1.2% while the Dow (+1.3%) and Nasdaq Composite (+1.3%) outperformed throughout the session.
In addition to regaining its 100-day average, the S&P 500 climbed above the 50-day average (2,102) after Bloomberg reported Germany may be willing to offer a staggered deal to Greece. This deal would allow the disbursement of additional bailout funds in exchange for a Greek commitment to executing one of the reforms requested by the creditors. On a related note, the European Central Bank increased Greece's allowance to Emergency Liquidity Assistance funds by EUR2.30 billion to EUR83 billion.
The news jolted global equities, helping Germany's DAX end the day higher by 2.5%. Furthermore, selling in Germany's 10-yr bund resulted in the first test of the 1.00% level since October. Germany's benchmark yield ended the day below its session high of 1.06%, at 0.98% (+3 bps).
Similarly, U.S. Treasuries also retreated, ending near their lows with the benchmark 10-yr yield higher by seven basis points at 2.48%, representing the highest yield since late October. The recent spike in yields has been beneficial to the financial sector (+1.4%), which extended its June advance to 1.9%, ending today's session only behind technology (+1.6%). The financial space received broad support from top-weighted components like Bank of America (BAC 17.59, +0.28), Citigroup (C 57.02, +1.02), and JPMorgan Chase (JPM 68.26, +1.08) with the trio gaining between 1.6% and 1.8%.
Elsewhere, the technology sector held the lead throughout the day, receiving support from large cap names like Apple (AAPL 128.88, +1.46), Google (GOOGL 552.60, +10.44), and Microsoft (MSFT 46.61, +0.96) while chipmakers also held their own with the PHLX Semiconductor Index adding 1.3%.
Over on the countercyclical side, consumer staples (+1.0%) and utilities (+0.5%) ended behind the remaining eight groups while telecom services (+1.2%) and health care (+1.2%) finished near the broader market. The health care sector received support from biotechnology with iShares Nasdaq Biotechnology ETF (IBB 365.83, +5.19) climbing 1.4%.
Today's trading volume at the NYSE floor was relatively light in the early going, but afternoon buying helped push the total to 766 million, above the 50-day moving average of 748 million.
Economic data was limited to the MBA Mortgage Index and Treasury Budget:
In addition to regaining its 100-day average, the S&P 500 climbed above the 50-day average (2,102) after Bloomberg reported Germany may be willing to offer a staggered deal to Greece. This deal would allow the disbursement of additional bailout funds in exchange for a Greek commitment to executing one of the reforms requested by the creditors. On a related note, the European Central Bank increased Greece's allowance to Emergency Liquidity Assistance funds by EUR2.30 billion to EUR83 billion.
The news jolted global equities, helping Germany's DAX end the day higher by 2.5%. Furthermore, selling in Germany's 10-yr bund resulted in the first test of the 1.00% level since October. Germany's benchmark yield ended the day below its session high of 1.06%, at 0.98% (+3 bps).
Similarly, U.S. Treasuries also retreated, ending near their lows with the benchmark 10-yr yield higher by seven basis points at 2.48%, representing the highest yield since late October. The recent spike in yields has been beneficial to the financial sector (+1.4%), which extended its June advance to 1.9%, ending today's session only behind technology (+1.6%). The financial space received broad support from top-weighted components like Bank of America (BAC 17.59, +0.28), Citigroup (C 57.02, +1.02), and JPMorgan Chase (JPM 68.26, +1.08) with the trio gaining between 1.6% and 1.8%.
Elsewhere, the technology sector held the lead throughout the day, receiving support from large cap names like Apple (AAPL 128.88, +1.46), Google (GOOGL 552.60, +10.44), and Microsoft (MSFT 46.61, +0.96) while chipmakers also held their own with the PHLX Semiconductor Index adding 1.3%.
Over on the countercyclical side, consumer staples (+1.0%) and utilities (+0.5%) ended behind the remaining eight groups while telecom services (+1.2%) and health care (+1.2%) finished near the broader market. The health care sector received support from biotechnology with iShares Nasdaq Biotechnology ETF (IBB 365.83, +5.19) climbing 1.4%.
Today's trading volume at the NYSE floor was relatively light in the early going, but afternoon buying helped push the total to 766 million, above the 50-day moving average of 748 million.
Economic data was limited to the MBA Mortgage Index and Treasury Budget:
- The weekly MBA Mortgage Index spiked 8.4% to follow last week's 7.6% drop
- The Treasury Budget showed a deficit of $82.40 billion in May, down from a deficit of $130.00 billion in May 2014 while the Briefing.com consensus expected a deficit of $85.00 billion
- The Treasury data are not seasonally adjusted so the May deficit cannot be compared to the $157 billion surplus in April
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Economic Data
from Briefing.com| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 10 | 07:00 | MBA Mortgage Index | 06/06 | 8.4% | NA | NA | -7.6% | |
| Jun 10 | 10:30 | Crude Inventories | 06/06 | -6.812M | NA | NA | -1.948M | |
| Jun 10 | 14:00 | Treasury Budget | May | -$82.4B | -$85.0B | -$85.0B | -$130.0B |
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Technical Update
DOW JONES INDUSTRIAL AVERAGE18000.4 +236.36 (+1.33%)
Volume: 96.98 Mil above average of 96.53 Mil
Range: 17765.38 - 18045.14
NASDAQ COMPOSITE
5076.689941 +62.82 (+1.25%)
Volume: 1792.98 Mil above average of 1758.74 Mil
Range: 5024.17 - 5086.66
S&P500 INDEX
2105.2 +25.05 (+1.20%)
Volume: 507.56 Mil below average of 519.13 Mil
Range: 2081.12 - 2108.5
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Market Internal
NYSE :Higher than average volume @ 782.3M vs 734.406M
Advancers outpaced Decliners(adv/dec): 2230M/850M
New highs outpaced low(high/low): 122/79
NASDAQ :
Higher than average volume @ 1780.9M vs 1757.852M
Advancers outpaced Decliners(adv/dec): 2051M/758M
New highs outpaced low(high/low): 164/40
Advancers outpaced Decliners by 2.66 to 1 on higher volumes 2563.2 (+2.85%) than avg 2492 (+0.02%)
VOLATILITY S&P500 (VIX) :
13.22 -1.25(-8.64%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Government Debt Continues Lower- Treasuries declined today in a curve-steepening trade. The yields on 5's, 10's, and 30's touched 8-month highs. Overnight, the German Bund yield briefly touched 1.05%
- Yield Check:
- 2-yr: unch at 0.73%
- 5-yr: +4 bps to 1.79%
- 10-yr: +5 bps to 2.49%
- 30-yr: +5 bps to 3.22%
- News:
- The MBA Mortgage Index for the week ending June 6th rose 8.4% versus the prior week's decline of 7.6%
- The Pimco Total Return Fund slashed its U.S. Treasury holdings by almost two thirds in April and escaped the brunt of the selling in government debt
- Crude Oil Inventories for the week ending June 6th declined by 6.812 mln barrels versus a fall of 1.948 mln in the prior week
- Some news agencies reported that Germany would consider offering Greece a staggered deal whereby Greece would follow a major reform this year with more reforms next year. The news sent equity markets ripping higher, although the market was already vulnerable to short-covering given yesterday's reversal
- The $21 bln 10-year note Treasury auction was met with strong demand. The auction stopped through by more than 1 basis point:
- High yield: 2.461%
- Bid-to-cover: 2.74
- Indirect bid: 57.9%
- The Treasury's deficit narrowed to $82.4 bln in May. The Briefing.com consensus had called for a deficit of $85.0 bln. April saw a deficit of $130 bln
- Commodities:
- WTI crude: +1.76% to $61.20
- Gold: +0.70% to $1,185.80/troy oz.
- Copper: +1.14% to $2.745/lb.
Currencies
Dollar Index Declines- The dollar lost against all of the majors today. The U.S. Dollar Index falling 0.52% to 94.67
- The U.S. Treasury saw its deficit decrease to $82.4 bln in May from a -$130.0 bln deficit in April. The Briefing.com consensus called for -$85.0 bln
- EUR/USD: +0.28% to 1.1318
- French and Italian Industrial Production missed estimates for April. In France, IP fell 0.9% m/m versus -0.3% in March. In Italy, the decline was 0.3% versus growth of 0.5% in the prior month
- This weaker economic data was counteracted by the German Bund yield breaking through 1.00% for the first time since September
- GBP/USD:
- In the U.K., Manufacturing Production fell 0.4% m/m in April, lower than both expectations and the +0.4% reading from MarchBoE Governor Mark Carney is slated to speak publicly at 16:00 ET
- USD/JPY: -1.43% to 122.59
- Overnight, BoJ chief Haruhiko Kuroda said "The yen is unlikely to weaken further in real effective terms if you think with common sense, given how far it has come."
- The market responded quickly and violently, moving 150 pips in roughly 20 minutes
- Overnight, BoJ chief Haruhiko Kuroda said "The yen is unlikely to weaken further in real effective terms if you think with common sense, given how far it has come."
- USD/CHF: +0.06% to 0.9313
- USD/CAD: -0.61% to 1.2265
- AUD/USD: +0.92% to 0.7763
- NZD/USD: +0.84% to 0.7203
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Preview: Thursday, 11 Jun 2015
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jun 11 | 08:30 | Initial Claims | 06/06 | 275K | 278K | 276K | ||
| Jun 11 | 08:30 | Continuing Claims | 05/30 | 2222K | 2200K | 2196K | ||
| Jun 11 | 08:30 | Retail Sales | May | 1.1% | 1.1% | 0.0% | ||
| Jun 11 | 08:30 | Retail Sales ex-auto | May | 0.5% | 0.7% | 0.1% | ||
| Jun 11 | 08:30 | Export Prices ex-ag. | May | NA | NA | -0.7% | ||
| Jun 11 | 08:30 | Import Prices ex-oil | May | NA | NA | -0.4% | ||
| Jun 11 | 10:00 | Business Inventories | Apr | 0.2% | 0.2% | 0.1% | ||
| Jun 11 | 10:30 | Natural Gas Inventories | 06/06 | NA | NA | 132 bcf |
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