Daily Market Recap

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The S&P 500 closed off by 1.15% and the Dow was off 0.93%. Negative news on Europe—an old theme returns—put the markets under pressure from the opening. Italian authorities are investigating several leading financial institutions. Spain's market fell by close to 4% as the country’s Prime Minister and other members of his party are being investigated in connection with a kickback scheme. 

Weakness in the European financial sector hurt financials here. The Spanish payments scandal looks to be something that will be in the headlines there for quite some time. Yields widened across Europe as there was a selloff in bonds across the continent.

Treasuries rallied as risk on assets sold off today. With stocks in favor so far this year Treasuries have been selling off steadily all year. The trend was reversed today. Treasuries rallied in light of the negative news coming from Europe.

Financials sold off across the board on the news of weakness in Europe. Banks, brokers and asset managers all sold off by roughly 1% today.

Industrials were up sharply last week. The sector saw some profit taking today. The sector was down in line with the overall market. Multi-line industrials were slightly ahead of the overall market with late stage cyclicals trailing. Capital equipment and agricultural equipment names were off by slightly more than the market after seeing aggressive buying last week. Engine makers were off today even with the release of the second best preliminary class 8 truck orders in the past year. 

Transports traded ahead of the market today. Parcels were the leading industry group within the sector. FedEx received favorable analyst comments today.

Materials were lower by just 0.50%. Precious metals traded ahead of the tape on strength in the underlying metals. Steels traded off in line with the market.

Source: PFS Group

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