THE GIST (“THE WHAT”)
Increasing odds of further rate hikes, coupled with recessionary jitters pushed the S&P 500 index lower to end its five-week winning streak. All eleven sectors within the broader index traded lower, led by real estate and technology stocks. The index closed the session at 4348.32, down 33.56 points (-0.77%).
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Trading Plans for FRI. 06/23: Bull Run Consolidation, Continued
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THE DETAILS (The “How & Why”):
Weaker-than-expected U.S. and Eurozone Purchasing Manager Index (PPI) data stoked recessionary concerns, pushing yields lower. PMI for the month of June fell to a 6-month low of 46.3, as against the expected increase to 48.5. The services PMI also fell to a 2-month low of 54.1, albeit slightly better-than-expectations at 54.
The 10-year Treasury note yield fell 6.2 basis points to settle at 3.733%. Falling yields failed to provide a meaningful lift in today’s risk-off session. Led by real estate and energy sectors, all the eleven sectors traded lower for the day. Oil prices continued their slide for the second session in a row amid worries of slowing demand and rising interest rates.
Semiconductor stocks also gave up recent gains. Lam Research Corp, Microchip Technology and Broadcom all fell more than 1% each. Nvidia also shed 1.9%. Bucking the trend, CarMax soared 10.07% to be the biggest gainer within the index after the used car retailer beat the first quarter earnings estimates. Generac Holdings Inc and Celanese Corporation were other strong gainers of the session, up 3.4% and 2.2%, respectively.