Markets hit a wall of nervous uncertainty Thursday as some selling from Wednesday continued. What little economic news we’ve seen recently came forth today and was treated negatively especially with employment data.
Jobless Claims provided a negative surprise with new claims at 368K vs 325K expected, and prior revised higher from 298K to 300K. That’s the highest reading since Hurricane Sandy in March. Wow! Retail Sales came in at 0.7% vs 0.6% expected, and prior at 0.6%. No big surprise there. Clothing sales were lower once again as buyers bought gadgets instead. Export Prices came in at 0.1% vs -0.3% expected, and prior at -0.6%. Import Prices was -0.6% vs -0.8% expected, and prior -0.6%. Business Inventories reported 0.7% vs 0.3% expected, and prior at 0.6%. They've got stuff to sell. Any buyers?
The data, especially Jobless Claims, challenged the credibility of the prevailing theme of "bad news is good" and undid the enthusiasm from last week’s employment report.
The selling was quite intense today. As markets hit their lows of the day, $3.728 billion in POMO added some juice for bulls to step in lifting markets. But in the end, POMO was just a temporary tonic as markets fell into the close.
Leading ETF sectors lower were Semiconductors (SMH), REITs (IYR), Gold Miners (GDX), Gold (GLD), Consumers Staples (XLP), Tech (XLK), China (XLF), Australia (EWA) Emerging Markets (EEM), India (EPI), Europe (VGK), and EAFE (VEA). Leading markets higher were few and far between including Natural Gas (UNG), Oil (USO) Oil & Gas Drillers (XOP) and Banks (KBE).
Our staff puts together the daily top 20 ETF market movers by percentage change in volume for gainers, decliners and emerging volume.
Volume was similar with Wednesdays (somewhat elevated) and breadth per the WSJ was negative. If you view the NYMO below you’ll see the market as short-term oversold.
By mid-week it seemed a long time to next Wednesday’s must watched FOMC meeting announcement. Nevertheless, investors are intimidated by the prospects whether imagined or not.
Markets are getting short-term oversold but Friday brings us little economic data leaving us the weekend to ponder the way ahead. Clearly Monday and Tuesday should be tense affairs before the FOMC announcement. But Monday brings Empire State Mfg Survey, Productivity & Costs, PMI Manufacturing Index Flash and Industrial Production. Tuesday is just the Home Price Index and Wednesday is Housing Starts and that’s it.
And, Boo!, it’s Friday the 13th!
Let’s see what happens.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||97.41||-0.09||-0.09 %||20:04|
|US Dollar||80.19||0.02||0.02 %||16:43|
|Brazil||2177.53||-0.45 %||-6.58 %||-20.17 %|
|Russia||761.58||-1.04 %||-1.67 %||-5.69 %|
|India||401.79||-1.51 %||1.87 %||-6.57 %|
|China||63.39||-0.99 %||-2.99 %||0.86 %|