News:
Thursday’s trading session was met with seemingly positive news.
The U.S. economy grew at a pace of 4.9%, according to the advance estimate from the BEA.
Forecasters projected growth of just 0.6% on average.
A booming economy didn’t inspire buyers. Selling pressures persisted in the markets.
The indexes closed mixed but favored the bears…
- Dow Jones -0.8%
- Nasdaq -1.8%
- S&P 500 -1.2%
- Russell 2000 +0.3%
The indexes heavily weighed by large caps suffered the most. But under the surface, buyers were still pushing select prices higher.
Of all the listed stocks…
- 45% advanced
- 51% declined
Sector Round Up
3 of the 11 sectors closed Thursday’s session with gains.
The winners…
- Real Estate (XLRE) +2.1%
- Utilities (XLU) +0.9%
- Materials (XLB) +0.7%
Risk-on stocks were at the bottom…
- Consumer Discretionary (XLY) -1.6%
- Technology (XLK) -1.9%
- Communications (XLC) -2.2%
Driving Factors
Real Estate was propped up by…
- An earning beat from American Tower (AMT) earrings beat, its stock rose +8%
- Surging mortgage rates that haven’t deterred buyers
Communications was dragged down by…
- Disappointing guidance from Meta (META), -4%
- Lost subscribers for NBC parent Comcast (CMCSA), -8%
Technicals:
Fear still hasn’t made a decent showing in the market.
The VIX is struggling to move much higher even though the 2-day selloff has rocked tech stocks.
The levels to watch right now are 22 and 20.
- Above 22 is bearish
- Below 20 is bullish
Your latest readout…
- RSI levels are split—the S&P 500 and NASDAQ are oversold, the others neutral
- The put-to-call ratio is oversold
We expect the seasonal bottom to be in by the end of next week.
Timing:
Wall Street will look to the Bureau of Economic Analysis again this morning.
The latest Personal Consumption Expenditures Price Index (PCE) will drop at 8:30.
PCE is the Fed’s preferred measure of inflation.
Next week, the FOMC will convene to make a decision about interest rates. Expectations currently favor holding rates steady.
Watchlist:
METC support at $11
SRRK support at $10
EPAC support at $28
PGTI support at $30
LOGI on watch