Friends
Most notable about today’s market action was the massacre among the momentum names like Netflix, Amazon, Facebook and Google which caused damage in the Nasdaq index. Apple shares also continued to act poorly. Interestingly, as we mentioned last week, money seems to be moving out of those names and into energy names and at least for today, some staples and retailers. Be aware, that this rotation could stop on a dime and money could flow right back into the higher flying momentum names, but for the moment more “boring” stocks seem to be in favor.
For the day, the Dow Jones Industrial Average was down 53 points to close at 22,295. The S&P 500 was down 5 points to finish the day at 2,496. Gold was up $15 to trade at $1,312 per ounce, while oil was up $1.51 to trade at $52.17 per barrel WTI.
This is the final week of the quarter, so it will be interesting to see if volatility picks up a bit as traders and fund managers position their portfolios for all to see and quarter end. On the economic front we’ll get a look at durable goods, new home sales, pending home sales, consumer confidence and our third look at 2nd quarter GDP. We still have a couple of weeks before we kick off the next earnings season, so it’s likely that political or geo-global headlines might hold the key to where markets go for the next week or two. Then again, markets have become somewhat numb to most of it so far this year. Let’s see how this week unfolds.
Have a nice evening everyone.
