|Jumping the gun, but was wondering <g>|
+80% on NYSE again today, but declining volume..... NDQ was middle of the road on moderate volume. We might be in for a decent bounce, but I suspect it will fail in the end.
Stock Market Update
Frequent updates on broad stock market activity, market data, and market-moving events. | Archive
Dow 31828.93 +754.44 (2.43%)
Nasdaq 11713.12 +353.10 (3.11%)
SP 500 3936.76 +105.84 (2.76%)
NYSE Adv 2597 Dec 520 Vol 902 mln
Nasdaq Adv 3209 Dec 1095 Vol 5.1 bln
Strong: Materials, Energy, Financials, Industrials, Communication Services
Moving the Market
-- Broad based rally effort
-- Contrarian-minded action after BofA Global Fund Manager Survey reveals lowest equity allocation since Lehman Bros. and highest cash levels since 2001
Closing Stock Market Summary
19-Jul-22 16:20 ET
Dow +754.44 at 31828.93, Nasdaq +353.10 at 11713.12, S&P +105.84 at 3936.76
[BRIEFING.COM] It was a rebound-minded trade today with each of the major indices showing sizable gains at the close. The market had a positive bias from the open thanks to lower energy prices, a weaker dollar, and an investor survey revealing how bearish fund managers have become. The S&P 500 steadily climbed to close near its intraday high, which put it above the key technical level of its 50-day moving average (3,922). Each of the main indices closed right around session highs.
There was relatively weak economic data this morning that did not dampen the rebound effort. The June housing starts and building permits report conveyed a weakening outlook for the housing market. This was taken in stride as sentiment was largely driven by the BofA Global Fund Manager Survey.
Today's contrarian-minded rally effort was fueled by the BofA Global Fund Manager Survey which revealed the lowest equity allocation since the Lehman Bros. bankruptcy and the highest cash levels since 2001. Most stocks came along for the ride and lifted with the rebound, as that survey conjured thoughts of a lot of pent-up buying potential.
Buyer enthusiasm could be seen in the advance-decline line. Advancing issuing outpaced declining issues by a 5-to-1 margin at the NYSE and a nearly 3-to-1 margin at the Nasdaq.
Further reflecting the uplift in sentiment was the S&P 500 sector performance. All 11 sectors closed in the green with gains from 0.7% (utilities) to 3.6% (industrials). The countercyclical consumer staples (+1.1%), health care (+1.8%), and utilities (+0.7%) sectors trailed the broader market.
It was an upbeat day in general but semiconductors, a leading indicator, showed outsized gains. The PHLX Semiconductor Index closed with a gain of 4.7% versus a 2.8% gain in the S&P 500.
Notably moving opposite the broader market were Dow components Johnson & Johnson (JNJ 171.69, -2.54, -1.5%) and IBM (IBM 130.88, -7.25, -5.3%). The former reported better-than-expected earnings and revenue but cut free cash flow guidance while the latter posted better-than-expected earnings but cut its FY22 outlook.
Energy complex futures settled the session mostly lower. WTI crude oil futures fell 2.0% to $100.72/bbl. Natural gas futures fell 2.8% to $7.19/mmbtu. Unleaded gasoline futures rose 0.9% to $3.31/gal.
Treasury yields rose today with the 2-yr note closing up six basis points to 3.22%. The 10-yr note yield rose six basis points to 3.02%.
Looking ahead to Wednesday, ASML (ASML 498.27, +24.79, +5.2%), Baker Hughes (BKR 28.22, +1.06, +3.9%), and Biogen (BIIB 220.26, +5.92, +2.8%) headline the earnings reports before the open.
Market participants will receive the following economic data Wednesday:
Weekly MBA Mortgage Applications Index (prior -1.7%) at 7:00 ET
June Existing Home Sales (Briefing.com consensus 5.40 million; prior 5.41 million) at 10:00 ET
Weekly EIA Crude Oil Inventories (prior +3.25 million) at 10:30 ET
Today's economic data was limited to:
June Housing Starts 1.559 mln (Briefing.com consensus 1.598 mln); Prior was revised to 1.591 mln from 1.549 mln; June Building Permits 1.685 mln (Briefing.com consensus 1.680 ml); Prior was unrevised at 1.695 mln
An upward revision to housing starts in May helped mitigate the headline miss for June, but the key takeaway from the report is that permits for single-family homes declined across all geographic regions. In turn, single-family starts were down in all regions, except the small Midwest region (+2.1%) that accounted for less than 12% of total single-family start in June.
Dow Jones Industrial Average: -12.4% YTD
S&P 400: -16.4% YTD
S&P 500: -17.4% YTD
Russell 2000: -20.0% YTD
Nasdaq Composite: -25.1% YTD