The market finished the last trading session of the week modestly higher. The Dow advanced 22 points after plunging 289 points yesterday. The Nasdaq, which was the best performer among the big three, gained 30 points. For the week, the Dow posted a loss of 130 points while the S&P 500 lost 3 points. Most economic news came better than expected. Durable goods orders for June unexpected rose 0.8% while economists were looking for a decline of 0.3%. Excluding volatile transportation orders, bookings rose 2%, the best this year following a drop of 0.5% in May. In addition, orders for non-defense capital goods excluding aircraft, which is a measure of future business investment, climbed 1.4%. Move on, we saw some good numbers on the housing front. Sales of new homes came at a 530K annualized pace in June, better than forecast of 505K. More important, the number of new houses for sale dropped by the most since 1963 to 426K units compared to 543K units a year ago, indicating that slowdowns in construction are starting to have an impact on the inventory level. The median sales price decreased 2% from a year ago to $230,900. Yesterday another report saw a 6.1% drop in price for existing homes. Finally, Michigan consumer sentiment index came at 61.2 while economists were looking for a reading of 56.4.
Basic materials and energies were among the best performers for the session. After being beaten down relentlessly since the end of last month, the commodity sector had huge overhanging volumes above the current price level. Unless something dramatically changed to bring commodity prices back to new highs, any rebound in the sector will be temporary. The CRB commodity index finished the session modestly lower and the index has dropped 9 out of the last 10 sessions. The US dollar moved modestly higher against most major currencies while treasures resumed its slump in the face of better than expected economic reports. The VIX index dropped fractionally and the market breath was slightly positive. The volume is on the light side.

The market ended this Thursday sharply lower amid renewed concerns over the housing market. By close, all three major indices lost 2% or more. The news on the economic front was not pretty today. Start with the weekly jobless claims. For the week ending July 19, the advance figure for initial claims was 406K, an increase of 34K from the previous week’s revised figure of 372K. Economists, on the other hand, were looking for a much tamer rise. The advance figure for continuing claims was 3.107 million vs. 3.116 million in the previous week. Move on to the existing home sales. The actual figure came at 4.86 million, down from the previous reading of 4.99 million and also below the consensus forecast of 4.94 million. The 4.86 million annualized sales were the lowest in over a decade. In addition, the inventory of unsold homes jumped to 11.1 months’ worth of supply compared to 10.8 in the previous month. The median home price dropped 6.1% from a year ago. Today’s worst than expected existing home sales reading reminded investors that the housing sector is yet to be bottomed. A rebound in crude price also contributed to the negative sentiment.
Financials were among the biggest losers for the session. The beaten-down sector has rallied over 30% since the lows reached last Tuesday so it was not surprising that some investors chose to take profits. Healthcares and consumer staples were among the sectors that performed relatively well. The CRB commodity index didn’t benefit from a rebound in gold and oil price and ended the session slightly lower. The US dollar was mixed against most major currencies while treasuries rallied due to flight to quality. The VIX index jumped 2 points. However, it was nowhere near the level it reached early last week. The market breath was decisively negative on both NYSE and Nasdaq.

The market was hovering around the unchanged level for most part of today’s trading before finishing modestly higher. The Dow advanced 30 points, bringing its total gains since July 15th to 900 points. The Nasdaq was closed higher by 22 points while the S&P 500 gained 5 points. Rising financial stocks and falling crude price were again two main themes during today’s trading. On the economic front, the latest Fed Beige book suggested that the pace of economic activity slowed somewhat since the last report. Five eastern Districts along with Chicago had a weakening or softening in their overall economies, compared with seven Districts that reported sluggish growth in the previous report. In addition, consumer spending was reported as sluggish or slowing in nearly all twelve Districts while price pressures were elevated or increasing.
Financials and transportations were among the biggest winners for the session. The latter was aided by another $4 plunge in crude price, which has lost over $23 since its peak. On the losers’ list, we again saw names such as energies and basic materials. Clearly, investors were concerned that demand destruction in both developed and developing countries would weigh heavily on commodity prices. The CRB commodity index lost another 1.7% and it is now over 12% below its peak. The US dollar was moving higher against most major currencies. Treasuries continued to slump as investors were preparing for rate hikes by the Fed. The VIX index moved slightly higher. The market breath was positive on both NYSE and Nasdaq with decent volume.

A late day surge in financials led the market significantly higher across the board. All three major indices finished the session higher by more than 1%, which was quite an achievement considering that futures were down as much as 1% this morning due to several poor earnings reports. From the lows of last week, the Dow has already rallied more than 800 points in just one week and much of the rally should be attributed to rising financial stocks and falling oil price. Indeed, another $3 plunge in crude price provided investors one more reason to buy shares today.
Financials and transportations were among the biggest winners for the session. The recent performance in financials was simply stunning. The Philadelphia Bank Index has gained over 40% from its lows reached early last week. On the losers’ list, we again saw names such as energies and basic materials. The CRB commodity index ended the session lower by 1.7%. From its top reached early in the month, the commodity index has already lost more than 10%. The US dollar was stronger against most major currencies while treasuries resumed its slump as money is fleeing away from previously safe heaven. The VIX index tumbled almost 2 points and closed at 21.18. Just one week ago, the index briefly broke the 30 level. The market breath was positive on both NYSE and Nasdaq with quite healthy volume.

The market started the new week in a rather quiet mood. All three major indices finished the session in red, but only slightly. Considering the huge gains from the final three sessions of the previous week, the market held up remarkably well. The news on the economic front came no surprise. The leading index decreased 0.1% in June following a revised down figure for May. Negative contributions in real money supply, stock prices and weekly initial claims were partially offset by positive contributions from building permits, the interest rate spread and supplier deliveries. The coincident index, on the other hand, increased slightly in June after a small decline in May. The rebound in crude price also had a negative impact on the market sentiment.
Basic materials and energies were among the biggest winners for the session. After being relentlessly sold off since the end of the last month, commodities did deserve some nice rebounds. However, it remains to be seen whether the latest rally can hold. The CRB commodity index also rebounded slightly in today’s trading as strength in energies were mostly offset by weakness in agriculture products. The US dollar was weaker against most major currencies. Treasuries, however, rebounded smartly following being sold off sharply in the previous week. The VIX index dropped another 1 point. The market breath was neutral. After the bell, several companies announced disappointing earnings results and the market will face some selling pressure when it opens tomorrow.