The S&P 500 declined by 0.12% and the Dow was off 0.04% while the NASDAQ was higher by 0.27%. More slow summer trading. There has been primarily sideways trading for the past several sessions with continued momentum in the European trade. Stocks from Europe are gaining favor as averages here are hitting multi-year and all-time highs.
Some of the lagging sectors year to date led the market today while this year’s leaders trailed. Homebuilders, tech, and telecom were the leading areas of today’s trading while rails, asset managers, and managed care lagged. Apple led the tech sector today. Much of technology was quiet but the former leader moved through its 200 day moving average on heavy volume. Apple traded higher by 2.8%.
Commodities were mostly higher, with precious metals, grains, crude, and natural gas gaining on the day. Gold is attempting to move above the important technical level of 1350. Gold traded higher by more than 2% for much of the day before closing up 1.8%. Silver spiked higher by 4%.
After losses over the past several weeks the homebuilders/building products stocks were a leading space today. Negative headlines regarding the potential unwinding of Fannie Mae and Freddie Mac put the space under pressure last week. The move today appeared to be a relief rally on little news.
Airlines, truckers, and parcels were leaders in the transports. Airlines gained 0.75%. FedEx continued its strong run today tacking on a gain of 0.76%. There was some speculation about activist investors that added to stakes in FDX today.
Energy was one of the weaker areas of today’s trading as natural gas declined by 3.75%. Solar stocks gained in the quiet tape. These names have been very volatile over the past several weeks.
Healthcare underperformed the market. Drug stocks and life science names outperformed and biotech and managed care news were out of favor today.
Consumer staples slightly outperformed consumer discretionary. There was some continued weakness in the retail group.
Source: PFS Group
