Reply To: Traders Market Weekly: Global Market Dislocation at a Precipice

#44017
TradersCom
Keymaster

Dow +197.26 at 31021.71, Nasdaq +86.62 at 11534.99, S&P +26.56 at 3899.96

Strong reverse after follow-through selling interest sent the stock market sliding at the open before the S&P 500 flirted with Friday’s low (3,837) and found support there. Stocks rebounded as Treasury yields fell back from their highest levels of the morning.

The main indices danced around the unchanged mark for most of the afternoon before catching a bid in the final hour of trade, helped primarily by an uptick in the mega cap stocks and other issues. T

he S&P 500 broke out of a narrow trading range but found resistance at the 3,900 level, closing a whisker shy of that important level.

The 2-yr and 10-yr note yields reached their highest levels since 2007 and 2011, respectively. The 2-yr note yield reached 3.97% before settling at 3.94% and the 10-yr note yield reached 3.51% before settling at 3.49%.

The major averages squeezed out decent gains by the close, but market breadth still painted a mixed picture. Decliners outpaced advancers by a 4-to-3 margin at the Nasdaq while advancers led decliners by a roughly 3-to-2 margin at the NYSE.

Only two S&P 500 sectors closed with a loss, health care (-0.5%) and real estate (-0.2%). The gainers were led by materials (+1.6%) and consumer discretionary (+1.3%).

Consumer discretionary was boosted by its homebuilder components after KeyBanc upgraded a number of individual names today. The SPDR S&P Homebuilder ETF (XHB) closed up 1.8% and the iShares U.S. Home Construction ETF (ITB) closed up 2.3%. This came as participants awaited the August Housing Starts and Building Permits report tomorrow at 8:30 a.m. ET, and followed the NAHB Housing Market Index release today.

Energy complex futures settled in a mixed fashion with WTI crude oil futures falling 0.5% to $84.96/bbl while natural gas futures rose 0.1% to $7.81/mmbtu.

  • This reply was modified 1 year, 10 months ago by TradersCom.