Today, the major indices went negative early with the DOW lower by as much as 60 points, the S&P 500 dropped 4 and the NASDAQ was down by 20 points at 9:45 EST. By 10 AM they were back on the upside with the DOW being buoyed by AAPL and the energy components. Crude oil steadied for the second day in a row at $43 a barrel even though it is now down for the fifth straight week. At today’s closing bell, the DOW fell 2, the S&P gained 3, and the NASDAQ was 28 points higher.
AAPL finished at $146, AMZN ended at $1,003, FB was at a new high of $155, and TSLA closed up again at $383.
There was a better housing report this morning with May new home sales up by 2.9%. The financials originally looked good but fell down by day’s end. They passed the first phase of the Federal Reserve “stress tests” which showed that they have enough capital to meet regulatory requirements even in the case of a severe economic contraction.
It was the fourth straight down day for the DOW. After four straight higher weeks, the rotation between the large indices continues.
Today, we also had BBBY declining after it’s earnings report, taking this company to a new eight-year low.
Bond yields were flat as the yield curve between the 10-year and 2-year treasuries has narrowed to 81 basis points. The Japanese yen was stronger at 111.27 and the Euro was 1.119. The weaker dollar allowed gold to move higher to $1,256 an ounce.
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.