Equities surged higher again with the Nasdaq adding 2.34% leading the major US Indices higher and continuing to rapidly retrace declines at the beginning of the month. The S&P 500 added 1.61% while the Dow gained 1.39% with all three indices closing near the best levels of the day.
At the Sector level, XLK and XLY lead the tape, with XLU and XLRE bringing up the rear as equities continue to unwind recession positioning this week.
Crude and Commodities prices finished the day higher with the former up > 1% on the day and the latter adding 0.75% as tracked by the Bloomberg Commodities Index. Interest rates firmed with respect to the 2yr and 10yr Treasury Yields which ended their sessions at 4.09% and 3.91% respectively.
Lighter jobless claims contributed to a narrative that recession fears are overblown, which has led to prices challenging near-term resistance on several benchmarks including SPX, XLK and XLY. We believe there is more consolidation ahead of us, but we are close to having our short covering signals triggered. It has been an impressive display by the bull this week, and the data has cooperated.
Friday will offer the University of Michigan Consumer Survey and Housing Starts as well as Building permits.
Eco Data Releases | Friday August 16th, 2024
| Date Time | Event | Survey | Actual | Prior | Revised | |
| 08/16/2024 08:30 | Housing Starts | Jul | 1333k | — | 1353k | — |
| 08/16/2024 08:30 | Building Permits | Jul | 1425k | — | 1446k | 1454k |
| 08/16/2024 08:30 | Housing Starts MoM | Jul | -1.50% | — | 3.00% | — |
| 08/16/2024 08:30 | Building Permits MoM | Jul | -2.00% | — | 3.40% | 3.90% |
| 08/16/2024 08:30 | New York Fed Services Business Activity | Aug | — | — | -4.5 | — |
| 08/16/2024 10:00 | U. of Mich. Sentiment | Aug P | 66.9 | — | 66.4 | — |
| 08/16/2024 10:00 | U. of Mich. Current Conditions | Aug P | 63.1 | — | 62.7 | — |
| 08/16/2024 10:00 | U. of Mich. Expectations | Aug P | 68.5 | — | 68.8 | — |
| 08/16/2024 10:00 | U. of Mich. 1 Yr Inflation | Aug P | 2.80% | — | 2.90% | — |
| 08/16/2024 10:00 | U. of Mich. 5-10 Yr Inflation | Aug P | 2.90% | — | 3.00% | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Friday August 16th, 2024
No S&P 500 Constituents report Today
Factor Friday
Growth has been on the comeback trail with Momentum and High Beta. Those three factors seem to comprise the pillars of the “risk-on” trade at present. Value and Low Vol. have been the counter-trend foils to this combination.
- Panel 1: S&P 500
- Panel 2: Invesco S&P High Beta ETF Relative to Invesco Low Vol. ETF
- Panel 3: iShares Momentum ETF Relative to S&P 500
- Panel 1: Russell 3000 Index
- Panel 2: Russell Mega Cap. Growth vs. Mega Cap. Value
- Panel 3: Russell Mid Cap. Growth vs. Mid Cap. Value
- Panel 4: Russell Small Cap. Growth vs. Small Cap. Value
Data sourced from Bloomberg
