Markets moved cautiously higher for a second consecutive session yesterday.
The S&P 500 (+0.89%), Dow Industrials (+0.97%) and NASDAQ (+0.65%) all logged gains and closed at session highs. Volume on both the NYSE (-5.69%) and NASDAQ (-6.15%) slumped as we move further into an abbreviated week on Wall Street. The NASDAQ managed to regain its 200 DMA, again by closing at 5001.11. However, neither the Dow Industrials or the S&P 500 managed as much. Given the sharp crude induced selloff last week in equities, the two day gains posted thus far this week have provided little comfort for investors looking for a positive conclusion to the year. This week’s gains have been neither convincing nor have they spoken to investor confidence. Volume has slowed, price action in terms of internals has been indecisive and crude continues to hang like a cloud over investor sentiment.
From a sector standpoint, all major market sectors again struggled but did manage to regain some of the ground recently lost. Industrials (+1.78%) and Consumer Staples (+1.17%) out performed to the upside while Communications (+0.39%) and Health Care (+0.48%) rounded out a solid day. A continued rebound in crude WTI (+ 4.0%) and strength in overseas equity markets provided for a repeat of Monday’s trade. The Economic Calendar also provided some support to the market yesterday. The Q/Q GDP data came in at 2% – matching consensus expectations. The price index – Q/Q change SAAR GDP also matched consensus expectations at 1.3%. Existing Home Sales – Level – SAAR did however disappoint. Consensus was calling for 5.320M. It came in at 4.760M. The FHFA House Price Index M/M was 0.5% versus expectations of 0.4%. In short, fewer existing homes sold but prices did rise in the period.
Today’s Economic Calendar features Durable Goods at 8:30 AM EST, Personal Income and Outlays also at 8:30 AM EST. At 10:00 New Home Sales and Consumer Sentiment. The real wild card will be the EIA Petroleum Status Report at 10:30 AM EST.
Flickr photo: BiblioArchives Canada