Daily Market Recap

After being down by as much as 172 points today the Dow closed off 40 points or 0.28%. The S&P 500 was down by 0.43%. While the S&P 500 is less than 2% off its recent high, hot groups like banks, airlines, transports, and semiconductors are lower by between 5% and 10%. There has been a rotation out of some of these riskier groups into larger total return stocks.

The market opened sharply lower in response to disappointing jobs data. Nonfarm payrolls added just 88,000 new jobs in March. This was down from the February number, which was revised aggressively higher today from 236,000 to 268,000.

There were also negative headlines out this morning concerning North Korea. South Korean officials confirmed that the North has moved a pair of mid-range missiles to its east coast.

Financials were mixed as life insurance companies, which have been recent winners, sold off. REIT’s continue to see buyers. Recent leader Bank of America opened sharply lower and reversed midday to close positive on the day.

The transportation sector experienced volatile trading today. The transports recently broke out to multi-year highs on heavy volume. The index has sold off sharply in the past few weeks. Transports moved sharply below their important 50-day moving average before a sharp rally took place in the final hours of trading. Transports closed up by 0.46% today and above the 50-day moving average.

Commodities were mostly higher on the day with precious metals, copper, grains, and natural gas all trading ahead of the tape. Crude sold off sharply early in the morning and rallied to close well off its lows.

Source: PFS Group

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