Note: Our nightly “S&P 500 Outlook,Forecast, and Trading plan for THURSDAY 06/21” – please check back later (usually published around 10:30pm EDT).
S&P 500 TODAY
THE GIST (“THE WHAT”)
Led by Blue-chip Technology and Consumer Discretionary stocks, the S&P 500 index rebounded from this week’s sell-off that was sparked by concerns of a fully blown trade war between U.S and China.
Maintaining its recent trend of falling to the day’s low in the early session and then bouncing off, the index bounced off after registering the day’s low at 2763.91. Swinging within a narrow range thereafter, but holding on to gains throughout the session, the index closed the session off day’s lows at 2767.32, up only 4.73 points and gaining a slight 0.17% over previous day’s close.
NOTE: The index closed just about half-a-point from our Intraday Aggressive models’ stop loss on the long position, which was hit and the position closed with profit. For details, please see the Intraday Alert by clicking here.
NOTE: The index closed just about half-a-point from our Intraday Aggressive models’ stop loss on the long position, which was hit and the position closed with profit. For details, please see the Intraday Alert by clicking here.
THE DETAILS (The “How & Why”):
Eight out of the eleven primary sectors closed the session higher. Telecommunications, Materials and Financials sectors capped the day’s gains as they continue to remain vulnerable to trade tensions still lingering in the background, losing 0.93%, 0.29% and 0.11% respectively. The broader Financials sector shed gains despite a slight gain in yields after the Federal Reserve Chairman Jerome Powell reiterated the need for a gradual rate hike. The 10-year Treasury yield inched up 3.8 basis points, settling at 2.935%.
Real Estate was the best performing sector in the index today, gaining 1.00%. According to the National Association of Realtors, existing home sales fell for the second month in a row as house prices rose to record highs due to inventory shortage. Existing home sales in May fell 0.4% to a seasonally-adjusted 5.43 million, compared to 5.45 million in April.
The broader Consumer Discretionary sector got a 0.65% lift from a 7.54% rise in stocks of 21stCentury Fox Inc. after Walt Disney Inc. raised its offer to acquire the company to $71.3 billion, surpassing a $52.4 billion offer by rival Comcast Corp. Amongst the top gainers for the day were FAANG stocks that continued their rally to reach their all-time highs. The broader Technology sector was up 0.64% for the day.
Energy stocks erased Tuesday’s loss, gaining 0.38% for the day as oil prices edged up on news of a biggest weekly decline in U.S. crude supplies. Oil prices continue to remain volatile ahead of the much-awaited OPEC and Non-OPEC members meeting in Vienna later this week to discuss oil production.