Markets couldn’t get anything going during market trading hours as volume was ultra-light.
Positive data and comments were plentiful from Germany, England and the Eurozone as economic conditions improved.
But manufacturing data from China continued to remain below 50 which caused a drop in China and Emerging Market sectors Wednesday. U.S. data was also soft as PMI Mfg Index Flash missed estimates and weakened slightly (55.4 vs 56.3 expected & prior 55.5) and new Home Sales plunged sharply (384K vs 455K expected & prior 449K). With the housing data you could still fault poor weather but this would be the last report with this as an issue. Also poor housing data is buttressed by weak mortgage demand which fell 3.3%.
Earnings overall were mixed featuring a good report from Boeing (BA), a weaker reading from Procter & Gamble (PG) and an ugly report from AT&T (T). After the close of trading Apple (AAPL) and Facebook (FB) will report earnings which should definitely move markets one way or another. Breaking: Apple beat overall earnings and revenues, raised dividend and stock buyback; and declares 7 for 1 stock split. Facebook beat estimates 25 cents vs 24 cents expected while revenues also beat substantially $2.5 billion vs $2.36 billion expected.
Leading market sectors higher Wednesday included: Gold Miners (GDX), Junior Gold Miners (GDXJ), Oil Holders (OIH), Energy (XLE), Industrials (XLI), Metals & Mining (XME), DJ U.S. Aerospace (ITA) Agriculture (DBA) and Bonds (LTT).
Leading market sectors lower Wednesday included: Tech (XLK), Small Caps (IWM), Homebuilders (ITB), Biotech (IBB), Alternative Energy (PBW), Solar (TAN), REITs (IYR), Healthcare (XLV), Consumer Discretionary (XLY), China (FXI), South Korea (EWY), Mexico (EWW), Turkey (TUR), Eastern Europe (GUR), Italy (EWI), Indonesia (IDX), Taiwan (EWT), Semiconductors (SMH), India (INP), Base Metals (DBB),
Chart of the Day: iShares US Homebuilders ETF (ITB) clearly wasn’t helped by the poor New Home Sales report showing a 14% decline. From a technical view, the next level of support is around $22 extending back to late December 2013.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Wow, volume on the day basically disappeared as more earnings news needed. Breadth per the WSJ was negative.
Markets were very tentative Wednesday given the weak overall volume.
Perhaps it would be logical to assume investors were just sitting back awaiting big earnings news from Apple (AAPL) and Facebook (FB). The former’s report didn’t please investors despite the beat, increase in dividend, stock buybacks and split. But sales of iPhones were disappointing it seems. Facebook (FB) on the other hand pleased given the pace of new signups yet many wonder what constitutes those or if they’re just “bot” driven.
More earnings reports on hand for Thursday and economic data including Jobless Claims and Durable Goods Orders.
Let’s see what happens.
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|WTI Crude Futr||101.67||0.23||0.23 %||03:28|
|US Dollar||79.95||0.00||0.00 %||16:59|
|Brazil||2316.835||-0.70 %||2.43 %||4.45 %|
|Russia||639.454||-0.83 %||-5.01 %||-18.74 %|
|India||437.375||-0.05 %||-0.43 %||7.38 %|
|China||59.114||-0.96 %||-0.48 %||-6.32 %|