In more astounding upside moves, the DOW closed 70 points higher today while the S&P 500 added 10 points to close at a record high of 2415. The NASDAQ, led by the unstoppable technology leaders, also climbed to a new high with a gain of 42 points to finish the day at 6205. New highs in AMZN, NFLX, ISRG and GOOG all helped the NASDAQ today. The DOW was led by BA, CAT, HD, TRV and UNH at its own new high.
Breadth numbers were positive at a 2 to 1 upside ratio. The VIX finished the session at 9.99. This is notable in that the VIX refused to go below its previous low at 9.70 from a few weeks ago. One of these days, the VIX will get to those levels at which one would assume that an overbought situation has developed and some sort of setback would therefore be in order.
Earnings revealed a few retailers doing better: BBY, PVH, DLTR and SHLD rose in that sector…although SIG was down as was HRL.
Crude oil prices sold off to $48.71 a barrel as Saudi Arabia decided not to make cuts as large as the market expected. The energy stocks moved lower…but this should be helpful with the start of the summer driving season tomorrow.
Bond yields were unchanged at 2.25% for the 10-year Treasury Note. The dollar was also quiet today. Gold was a little higher at $1,258 an ounce, and is showing some independent strength lately.
Donald M. Selkin
These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.