Monday, July 4, 2022 – Markets were closed for Independence Day.
Tuesday, July 5, 2022 – DIA 309.71 -.37%, QQQ 286.96 +1.71%, SPY 381.96 +.19%, IWM 172.83 +.83% CNN Fear & Greed Index @24 (Extreme Fear)
Factory Orders reported in at +1.6% vs. +.5% expected. Equity markets had a trap door opening (1.9% on QQQ) from the closing levels of Friday, the previous market session, ostensibly on trader & investor fears that a recession was imminent. But as stop orders were completed, the market stabilized. Stocks began a full-on rally 15 minutes into the day’s trading. Communication Services (XLC) 56.09 +2.32% was the lead S&P 500 economic sector, followed closely by Consumer Discretionary (XLY) 143.14 +2.24%. The worst performing Sector Energy Services (XLE) 69.70 -3.97%. Nike (NKE) 104.32 +3.10% led the DJIA, followed by Salesforce.com (CRM) 172.20 +2.38%. The big laggards in the index were Chevron (CVX) 142.66 -2.63% and Caterpillar (CAT) 173.76 -2.54%. Pandemic favorite video conferencing provider Zoom, Inc. (ZOOM) 120.42 +8.52% dominated the NDX100 index, followed by MercadoLibre (MELI) 713.57 +8.12% and Lululemon (LULU) 283.62 +7.68%. The big laggards in the index were utilities Exelon (EXC) 43.62 -5.32%, Constellation Energy (CEG) 54.94 -4.62%, and American Electric Power (AEP) 93.58 -4.46%. In the S&P 500, pandemic favorite internet crafts retailer Etsy, Inc. (ETSY) 88.24 +10.56 led that index, followed by Norwegian Cruise Lines (12.46) +9.97%. Energy companies dominated the downside action in the index: Halliburton (HAL) 28.89 -8.08%, APA Corporation (APA) 32.73 -7.41%, ConocoPhillips (COP) 84.64 -6.97%, and Hess (HES)98.19 -6.83% were the worst performers.
Wednesday, July 6, 2022 – DIA 310.41 +.23%, QQQ 288.80 +.64%, SPY 383.25 +.34%, IWM 171.55 -.74% CNN Fear & Greed Index @25 (Extreme Fear)
ISM Services Employment Index for June reported at 47.4 vs. 49.8 expected. The ISM Services New Orders Index came in at 55.6 vs. 62.1 expected. The ISM Services PMI was 55.3 vs. 54.5 expected. Equity markets opened higher and moved higher in a quiet summer trade. The one outlier was small caps which turned in a negative performance. Interest rates rose with the 10-Year Note (yield) Index closing at 29.13 +1.04. Utilities (XLU) 70.12 +1.04% led the eleven S&P 500 economic sectors, followed by Technology Services (XLK 130.12 +.86%. Once again, Energy Services (XLE) 68.51 -1.71% came under selling pressure as WTI crude oil experienced a break in prices down to $95.10, closing at 98.00 -$1.50. United Healthcare (UNH) 515.29 +1.99% led the DJIA, followed by Cisco Systems (CSCO) 42.69 +1.74%. The laggard in the index was Walgreen’s Boots Alliance (WBA) 37.78 -1.90%. In the NDX100 Lucid Group (LCID) 18.22 +5.75% led the index. The shares have been in a basing pattern since the week of May 9th. The four worst-performing stocks were China internet retailers, Pinduoduo (PDD) 61.69 -7.4%, JD.com (JD) 61.76 -4.59%, NetEase (NTES) 89.23 -3.35%, and Baidu (BIDU) 149.20 -3.27%. In the S&P 500, Northrop Grumman (NOC) 481.87 +3.77% led the index followed by L3Harris Technologies (LHX) 239.60 +3.74%. The worst performers were Travel & Entertainment shares, in which the cruise companies were the hardest hit. Norwegian Cruise Lines (NCLH) 11.27 -9.55%, Royal Caribbean (RCL) 33.69 -7.19%, Carnival Cruise (CCL) 8.74 -6.82, Caesars Entertainment (CZR) 40.32 -4.59%, Penn National (PENN) 31.02 -3.99%
Thursday, July 7, 2022 –DIA 313.95 +1.14%,QQQ 294.98 +2.14%,SPY 388.99 +1.50%, IWM 175.61 +2.37% CNN Fear & Greed Index @28 (Fear)
Initial Jobless Claims reported in 235K vs. 230K expected. Markets gapped higher on the opening and continued higher. WTI crude oil rebounded to 102.22 +$3.69. Energy Services (XLE) 70.98 +3.61% led the eleven S&P500 economic sectors, followed by Consumer Discretionary (XLY) 146.59 +2.58% and Technology Services (XLK) 132.81 +2.07%. Caterpillar (CAT) 180.28 +4.63% led the DJIA, followed by Nike (NKE) 108.13 +3.74%. Coca-Cola (KO) 62.91 -.79% was the worst performer in that index. Lucid Group (LCID) 19.81 +8.73% led the NDX100, followed By Moderna (MRNA) 172.40 +8.05% and KLA Corporation (KLAC) 314.17 +7.23%. The worst performer in the index was utility firm Xcel Energy (XEL) 69.58 -2.01%. In the S&P500. In the S&P500 energy firm APA Corporation (APA) 34.51 +7.81% took the second spot right behind Moderna. KLA Corporation (KLAC) 314.17 +7.23% was the third-best performer. In the R1000 index, software developer Avalara (AVLR) 85.63 +16.44% led the index. On the chart, the stock has been basing since May.
Friday, July 8, 2022 – DIA 313.46 -.16%, QQQ 295.35 +.13%, SPY 388.67 -0.08%, IWM 175.59 -0.01% CNN Fear & Greed Index @30 (Fear)
The Unemployment Rate was steady at 3.6%. Non-Farm Payrolls came in strong at +372K vs. +268K expected. The U-6 Underemployment Rate fell to 6.7% from 7%. The Labor Force Participation Rate was steady at a disappointing 62.2%. Healthcare Services (XLV) 130.74 +.30% performed best of the eleven S&P500 economic sectors in a sleepy summer Friday mixed session. Basic Materials (XLB) 73.02 -.98% was the laggard performer. United Healthcare (UNH) 518.63 +.83% led the DJIA, followed by American Express (AXP) 141.76 +.52%. Walgreen’s Boots Alliance (WBA) 37.55 -1.73% performed the worst in the index. Chinese internet firm NetEase (NTES) 90.97 +2.67% was the top performer in the NDX100. In a mirror opposite performance, a couple of fellow China internet firms were some of the worst performers in the index, Pinduoduo (PDD) 60.80 -2.30% and JD.com (JD) 62.01 -1.77%. Solar firm Enphase Energy (ENPH) 216.45 +4.65% led the S&P500 index. The stock has been showing relative strength in recent sessions and has broken up above a downtrend. Healthcare insurance firm Centene Corporation (CNC) 88.01 +3.23% took second place in the index. The stock has shown good relative strength in recent sessions as well and has broken above a downtrend.
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