The S&P 500 was off for the third straight day of trading. The average closed lower by 0.84% and the Dow was lower by the same amount. Semiconductors, media, biotech, and regional banks were laggards today while leadership came from semiconductor equipment makers, telecom, and homebuilders.
Media was lower as upfront advertising sales disappointed. The group has also been a leading industry group for much of the year and is seeing some profit taking.
Biotech stocks were lower even though there was positive Phase 3 data released about a cancer drug from Amgen. Biogen Idec sold off sharply after it was downgraded over concerns on slowing sales of a key drug in Europe.
Commodities were mostly higher today with precious metals, copper, crude, and natural gas all outperforming the market. Gold closed near its highs for the day and ended higher by 0.80%. Copper traded higher by 0.92%.
Banks traded aggressively lower with the bank index, BKX, off 1.7%. While an increase in rates and a steepening yield curve is viewed as a long-term positive for the space, some feel the recent move has been overdone and are taking profits. Morgan Stanley sold off after a huge run higher last week. Company management gave a presentation at an investor conference that was favorably received. Even through all coverage from the conference was positive there was profit taking in the name today.
Technology shares were roughly in line with the market. Hewlett Packard moved to a new 52-week high. The stock rallied after Meg Whitman appeared on CNBC and spoke about the positive changes at the tech giant. Semiconductors traded off. Semi equipment maker Applied Materials traded higher after it received an analyst upgrade.
Transports traded better than the market and were off slightly. Airlines were the best area of the sector after seeing heavy profit taking recently. Alaska Airlines was a leading name today.
Crude was lower by 0.50% and energy was roughly in line with the tape. Tesoro was a leader today after receiving favorable analyst commentary before the open.
Source: PFS Group
