June 23rd 2014 – Dow Retreats For First Time in 7 Sessions
Market View:
Well it was the first official day of summer today and it’s raining outside and the clouds were also over Wall St. We are still in the overbought territory and seem to have leveled out over the last couple of trading days, yet we could still see the market go higher.
US housing numbers were very encouraging, but geo political events in Iraq are weighing on the markets after such a big run up.
Market News:
U.S. stocks declined on Monday, with the Dow Jones Industrial Average halting its longest win streak this year.
The National Association of Realtors reported the sale of previously-owned homes rose 4.9 percent in May to an annualized rate of 4.9 million, versus a 1.5 percent gain the month before.
U.S. Secretary of State John Kerry traveled to Baghdad on Monday, where he pushed the Iraqi prime minister to form a more inclusive government as it attempts to stem a Sunni insurgency across much of the northern and western parts of the country.
The Dow Jones Industrial Average dropped nearly 0.1 percent, with Pfizer and General Electric pacing blue-chip losses, which included 18 of 30 components. GE declined after sealing a $17 billion deal for Alstom’s energy assets.
The S&P 500 finished little changed, just points from its all-time high of 1,963.91 hit on Friday. Industrials paced sector declines and energy fared the best among the S&P’s 10 major industry groups.
The Nasdaq ended about half a point higher.
Still trading near seven-year lows, the CBOE Volatility Index, one measure of investor uncertainty, rose 1 percent to 10.96.
Stock futures were mixed ahead of the open after weak readings on business activity in Europe countered upbeat manufacturing data in China.
The HSBC/Markit Flash China Manufacturing Purchasing Managers’ Index rose to 50.8 in June from May’s 49.4, while the Markit’s Composite Purchasing Managers’ Index for the euro zone dropped to 52.8 from May’s 53.5.
Markit’s flash PMI reading for the United States for June rose to 57.5 in June from 56.4, with the latest read beating expectations for 56.5.
International Markets: Argentina’s benchmark Merval index, which is pretty volatile lately, surged more than 8.5% today on news that the country may be able to reach a settlement with its holdout creditors that would avoid a default.
European stocks are largely down, with the FTSE 100 closing 0.36% down. Asian markets are also a mixed bag. Chinese stocks did well after the country’s manufacturing sector showed its first expansion in six months. The Hang Seng fell 1.7%, but shares traded in Shenzen were up nearly 1.1%
Earnings: Walgreen, Apogee Enterprises
9 a.m.: Case-Shiller home prices
9 a.m.: FHFA home prices
10 a.m.: Consumer confidence index
10 a.m.: New home sales
10 a.m. Richmond Fed survey
News Sources: CNBC and CNN Money