Reply To: Traders Market Weekly: Half Year Rebalancing High Wire Act


Today’s weakest sectors are the cyclical energy (-3.7%), materials (-1.4%), industrials (-1.1%), and financial (-1.1%) sectors.
There is broad-based weakness in the commodities markets, which includes declines for WTI crude futures ($105.26/bbl, -0.93, -0.9%), copper futures ($3.78/lb, -0.16, -4.0%), and lumber futures ($600.40/bft, -11.20, -1.8%).

The 2-yr note yield, which hit 3.43% a little more than a week ago, is back to 2.97%. The 10-yr note yield, which flirted with 3.50% a little more than a week ago, is back to 3.05%.

The mega-cap stocks, which are seen as having better earnings dependability in a slowdown, are outperforming. The Vanguard Mega-Cap Growth ETF (MGK) is up 1.1%.

The countercyclical consumer staples (+1.5%), utilities (+1.4%), and health care (+1.4%) sectors are in demand and have led this week’s gains.

Travel-related stocks are among today’s more notable laggards.