S&P 500 TODAY

THE GIST (“THE WHAT”)
The S&P 500 index took a breather after rallying for four straight days as a sell-off in FANG stocks overshadowed a rally in the Energy and Telecommunication sectors. For four days in a row, the index has managed to stay above the trading range of 2700-40 which it was confined to since May 9th. Swinging between gains and losses, but trading lower, the index closed the day mostly unchanged at 2770.37, down 1.98 points and losing a slight 0.07% over previous day’s close. 
THE DETAILS (The “How & Why”):
Energy sector was the best performing sector in today’s session, gaining 1.58% as oil prices firmed up. Crude oil prices had a best rally in a week; rising on concerns of supply issues after the OPEC indicated that it might focus on balancing the market instead of raising oil production this month. Falling exports from Venezuela also added to the concern.
Telecommunication sector rallied for the second consecutive day after the Trump administration lifted sanctions on ZTE Corp. following weeks of negotiations between the U.S. and the Chinese government. The deal came with a condition that ZTE Corp. overhauls its management, pays a $1 billion fine and puts an additional $400 million in escrow. The sector was the second best performer in the index, gaining 1.22%.
The offsetting decline was led by Technology sector, driven by a major sell-off in FANG stocks seen as a profit taking move by investors with the FANG stock prices reaching their near-time highs. Weakness in Semiconductor stocks also weighed down on the broader Technology sector. Stocks of Lam Research fell 5.40% after an Evercore ISI analyst cited slowdown in the company’s near-term outlook. Materials stocks also shed 0.54% after rallying in the last two sessions.
The broader Financials sector continued its trend upward for the second straight day, gaining 0.21%, despite a fall in yields. The 10-year yield moved closer to the critical 3% mark in the early session but pulled back in the afternoon session, settling at 2.92%, down 4.8 basis points.
On the economic data front, the weekly initial jobless claims unexpectedly fell by 1,000 to a seasonally adjusted 222,000 compared to the expected 225,000, suggesting a further tightening in the labor market.