Equities finished June’s first week on a slight down note as the Dow paced the major US indices giving up 24 bps, while the S&P 500 was down 15bps and the Nasdaq coughed up 11bps.
Today’s futures continue the theme with the Down expected to open down 0.22%, the Nasdaq off 0.23% and the S&P 500 0.11% lower. A light economics and earnings calendar for Monday as ADSK reports, and the NY Fed. releases 1yr inflation expectations near mid-day.
Sector trends have favored XLK and XLC since May’s inflation report came in a drop light. Commodities prices came under pressure last week after a sharp rally and Crude has traded down to near-term support. Rates have followed suit by moving lower. This keeps the macro environment supportive of a combination of Growth and Low vol., but we should keep an eye on cyclical sectors with the 10yr Yield chart oversold to see if that paves the way for more bullish speculation.
Eco Data Releases | Monday June 10th, 2024
| Date Time | Event | Survey | Actual | Prior | Revised | |
| 06/10/2024 11:00 | NY Fed 1-Yr Inflation Expectations | May | — | — | 3.26% | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Monday June 10th, 2024
ADSK and the software industry at large is on the ropes. While Q1 nominally was a beat for ADSK, the stock sold off on weak outlook and is now at structural support on the chart. Another big miss would be concerning as the Tech Sector has been a core participant in this bull market but has seen upside participation narrowing. Peers CRM, INTU and NOW all came up a bit late vs. expectations.
- ADSK (200-day m.a. | RSI | Relative to S&P 500)
- Price is at support, Relative curve is diverging lower triggering a longer-term sell signal
Momentum Monday: More than just the Mag7
It’s time to highlight the least talked about big mo. Stock in the S&P 500. It doesn’t get lumped in with the Mag7 because it is not a Tech stock, nor historically a big Growth stock, but it arguably has become both given its revolutionary product.
- LLY (200-day m.a. | RSI | Relative to S&P 500)
- RSI stays persistently overbought as LLY transitions to long-term uptrend from a massive 15-year base pattern.
Sources: Bloomberg
