The S&P 500 was down 0.52% and the Dow was lower by 0.73%. The S&P 500 has closed higher just four days so far this month, but the index is just 1.3% from its high. While the overall market is quiet there are big moves going on in certain stocks and areas of the market.
The European stock market is extending its gains relative to the U.S. Apple continues to gain momentum. The stock is up 9.6% for the week and 26% quarter to date. Commodity and China-linked opportunities are strong. Housing related names continue to come under pressure. The home index is lower by 12% for the quarter.
Within the S&P 500, homebuilders, retail, semiconductors, and media were weak while banks, materials, and technology rallied. Homebuilders continue to wane due to fear of rising interest rates. Cree reported a negative earnings surprise and declined 22% and weighed down the semiconductor area. Apple continues to lead the tech sector higher. Media stocks were hurt from concerns over the UHF discount fees being removed. Macy’s released a negative earnings surprise and caused selling across the retail space.
Commodities were higher across the board with precious metals, copper, crude, grains, and natural gas all trading in the green. Gold traded higher all day and closed higher by 1%. Silver gained close to 2%. Natural gas moved higher by more than 2%.
Airlines continued to hurt the transports today. The Department of Justice move to dissolve the US Airways UAL merger will create continued volatility for the area. Airline stocks closed lower but well off their lows.
Broadcasters were weak today as reports swirled that the FCC is considering cutting both viewership discounts and licensing fee discounts for UHFs. This follows on the actions relating to the airline stocks and puts stocks that face any regulatory issues under pressure.
Weak numbers from Macy’s hurt retailers specifically and the consumer discretionary space in general. Large retailers, Wal-Mart and Kohl’s, report quarterly earnings tomorrow.
Source: PFS Group
