The S&P 500 declined 0.33% and the Dow was lower by 0.20% as an increase in long-term rates hurt the market today.
Retail came under pressure after Nordstrom and Joseph A. Banks reported lower than expected quarterly earnings. Strength was seen in technology and industrials while consumer staples, utilities, materials, and telecom services were weak.
Stocks sold off early and saw a rally at the start of the final hour of trading to bring the major averages to the flat line prior a retreat in the final half hour.
European stocks had another strong day as the Dow Jones Euro Stoxx index gained 0.65%. European stocks closed the week higher by 1% and are higher by 10% for the quarter. Banks continued to rally in Europe as they tacked on a gain of 1%.
Gold and silver were higher on the day. Gold closed above the $1350 level for the first time in months. This is a technical level that is widely viewed as critical resistance. The intermediate-term trend for gold has turned positive for the first time in quite a while. There are several gaps above the current price that need to be taken out in order for the long-term trend on gold to turn positive.
U.S. consumer sentiment came down from its recent peak. The University of Michigan consumer sentiment index fell from the lofty July reading of 85.1 to 80.0 for August. This was slightly below the consensus estimate.
Applied Materials helped the semiconductor space. AMAT reported earnings after the close last night. The stock was higher by as much as 4% in early trading and closed higher by 2.0%. AMAT makes the equipment companies use to make semiconductors. The group moved higher because AMAT gave better than expected guidance for next year on their analyst call.
Industrial stock traded ahead of the tape all day today. When the market sold off fairly aggressively in the morning stocks in this space were virtually flat. Buying increased today after the pullback yesterday.
Source: PFS Group
