Thu, 22nd June 2017

Anirudh Sethi Report


Archives of “US Market” Category

Overnight US MARKET :Dow closed-57 points ,S&P down -1.42 ,Nasdaq up 46 points.

The Nasdaq stocks have been the underachievers of late.  There has been a rotation out of the tech stocks and a move into the more “industrial” sector.   That is not the case for today though.
In trading today:
  • The Dow 30 stocks were lower by -57.11 points or -0.27% to 21410. The high reached 21492. The low 21390.
  • The S&P was near unchanged at -1.42 points or -0.6% to 2435.61. It’s high reached 2442.23. The low 2430.74.
  • The Nasdaq was the big winner at +45.92 points or +0.74% to 6233.95. The high reached 6236.65. The low extended to 6200.86
Tech is back in vogue – at least for the day.
In the US debt market today:
  • 2 year 1.3481%, up 0.4 bp. The high reached 1.3604%. The low 1.3399%.
  • 5 year 1.773%, up 1 bp. The high reached 1.7848%. The low 1.7532%.
  • 10 year 2.1617%, up 0.5 bp. The high reached 2.1756%, The low 2.1425%.
  • 30 year 2.7281%, down -1.0 bp. The high reached 2.753%. The low 2.72%. This is the lowest since November 9th.
There are concerns about the flattening of the yield curve.
The yield curve flattens when the Fed raises rates in the short end and investors anticipate a recession or lower inflation in the future.
Inflation remains a concern for some Fed officials (and the market). Nevertheless, the Fed is also worried that if the economy goes into a recession, they won’t have tools to re-inflate unless they raise rates.   HMMMM. Quite a dilemma for the Fed.

Overnight US Market : Indices end the day near lows for the day

S&P down -0.67%. Nasdaq down -0.82%

The US major indices are ending the day near session lows. No rally today and Washington chatter on tax reform. That story has been told a number of times already.
For the major indices:
  • The S&P index is ending the session down -0.67% or -16.4 points to 2437. The low reached 2436.60. The high was at 2450.66.
  • The Nasdaq is ending at 6188, down -50 points or -0.82%. The low reached 6186.94.
  • The Dow is ending down -62 points to 21467. The high reached a record level of 21535.03. The low extended to 21464.24.

Overnight US Market :Dow closed +142 points ,S&P Up 20 points.

Dow and S&P closing at record high levels. Nasdaq the big gainer but still off record levels.

The US major indices are up strongly with the Nasdaq leading the way.
  • The Nasdaq is closing up about 87 points or 1.42%
  • The S&P is closing up about 20 points or 0.83%
  • The Dow is closing up 142 points or 0.67%
The S&P and Dow are closing at record levels.   Although the Nasdaq is the biggest gainer today, it remain well below the high from June 9th at 6341.696.  The closing level today was around 6239.
Looking at the daily chart below, the Nasdaq index did hold trend line support and above the 50 day MA at the lows last week.


Overnight US Market :End the session mixed/little changed

Nasdaq continues slide.

The major stock indices are ending the day mixed.  The big news all day was the Amazon purchase of Whole Foods by Amazons.  Visions of all food stores closing and Amazon feeding and delivering to the world was the theme (I kinda like going grocery shopping, and eyeing the bargains. Whole Foods is nice but expensive).
Amazon ended the day up $23.54 or 2.44%. The immediate damage was to the likes Target (down -5.14%), Kroger (-9.24%), and Wal-Mart (-4.65%).  The drug stores were also sharply lower on expectations they will be the next in the cross hairs.  Honestly, that makes more sense to me if it means lower costs. I don’t really care about delivery. The drug store is a mile away (I should walk there to get any prescriptions).
Anyway, the S&P is ending unchanged. The Dow is up. The Nasdaq is down.
More specifically,
  • Dow up 24.38 to 21384.28 (+0.11%)
  • S&P was up 0.69 points or 0.03% to 2433
  • Nasdaq was down -13.74 points or -0.22% to 6151.75.
For the week,
  • The Nasdaq is ending the week down -0.90%
  • The S&P rose 0.06%
  • The Dow was the big gainer at up 0.53%.

Overnight US Market :Dow closed -15 points.Nasdaq down 29 points

Nasdaq continues to lead the downside

When is a down day, a relief?
When intraday levels were much lower.
For the 2nd day in a row, the tech heavy Nasdaq was down over -1% at the lows (the Nasdaq was down -1.4% at the lows today, only to recover and not feel as bad.  The Nasdaq is still leading the decline for the stocks today. It is down -0.49% at the close.
The summary for the major indices:
  • The S&P index is down -5.46 points or 0.22% to 2432.46. The high reached 2433.95. The low extended to 2418.53.
  • The Nasdaq is closing down -0.47% or -29.39 points to 6165.50. The high reached 6170.14. The low 6107.848
  • The Dow is closing down -14.66 points or -0.7% at 21359.90. The high reached 21367.28. The low 21261.87.

Overnight US Market :Indices have volatile afternoon, but recover into the clo

Ups and downs.  S&P and Nasdaq down. Dow up and sets another record close.

I guess you can say, the market is still nervous about the tech heavy Nasdaq-like stocks and are more comfortable with putting money to work in the Dow (or perhaps even bonds).  As a result, the Dow is the winning index after all the volatile dust settled (it closed at a record level), and the Nasdaq is the loser. The S&P ended down but is hanging closer to the Dow.
More specifically:
  • The Nasdaq fell -25.47 points to 6194.89, but was down as much as -66 point at the lows (to 6153.54).
  • The S&P index fell -2.43 points to 2437.92. It traded as low as 2428.34
  • The Dow was up +46.09 points to 21374.56. The low reached 21294.09. The high 21391.97
The note and bonds yields are lower but the 2 year yield recovered much of the earlier declines (yield curve flatter):
  • 2 year 1.335%, down -2.8 bps. The low yield reached 1.2823%. The high was 1.3633%
  • 5 year 1.7186%, down -6.2 bps. The low yield moved to 1.6708%. The high was up at 1.7813%
  • 10 year 2.1290%, down -8.1 bps. The low yield reached 2.101%, but the high was up at 2.2092%
  • 30 year 2.773%, down -9.18%, The low yield fell to 2.759%, and high was up at 2.864%.

Overnight : S&P and Dow has record closes. Nasdaq still working on reversing declines.

S&P ends up 0.45%. Nasdaq up 0.73%.

The S&P index and Dow are both closing at record highs.  The Nasdaq still has some ways to go but it too had a solid gain.
  • The S&P is closing up 10.96 points to 2440.35 (0.45% gain). The high reached 2441.49. The low traded down to 2431.28. The close took out the prior high close at 2439.07.
  • The Dow is closing at 21328.47, up 92.80 points (up 0.44%) . That is a record close for that index.
  • The Nasdaq was up 0.73% or 44.90 points to 6220.371.  The close is still below the record level of 6321.76 (so it remains 101 points away).   The index is also still below the 50% of the move down from the June 9th high (at 6226.18) AND the 100 hour MA at 6231.  A move above those technical levels is still needed to push the price higher.

Overnight US Market :Dow closed -36 points ,Nasdaq Composite -32 points.

The Nasdaq index was down nearly 100 points at the low but is ending the day down only -32.45 points or -0.52% at 6175.46.  The low for the day reached 6110.66. The high extended to 6183.809.  The other major indices did not have as volatile a ride.

  • The S&P Index fell -2.38 points or -0.10% to 2429.40. The low extended to 2419.97. The high reached 2430.38.
  • The Dow is finishing the day at 21235.67, down -36.30 points or -0.17%. The high reached 21277.08 while the low extended to 21186.15.
In he US debt market, the yields traded above and below the unchanged level.
  • 2 year 1.3510%, up 1.6 bp. The high reached 1.3551%. The low 1.3347%
  • 5 year 1.778%, up 1.1 bp. The high reached 1.7879%. The low 1.7516%
  • 10 year 2.211% up 1.0 bp. The high reached 2.215%. The low 2.1848%
  • 30 year 2.8671% up 1.1 bp. The high reached 2.872%. The low 2.835%.

Dow closed +89 points up.Nasdaq Composite crashed 114 points down.

S&P down but limited. Dow ends the day up. ROTATION.

The stock market rotated out of the high flying tech stocks.
  • The Nasdaq reached an all time high earlier in the day, but the afternoon saw the market tumble.  The high reached 6341.695. The low 6137.67 – a range of over 200 points. That is huge.   The index is settling at 6207.92, down -113.85 or -1.80%. For the week, the index declined by -1.55%.
In the other major indices:
  • The S&P fell -2.02 points or 0.08%. For the week the index was down -0.30%
  • The Dow closed higher up 89.44 points or +0.42%. For the week the Dow was up 0.31%.