The Nasdaq finally relinquished its winning streak finishing off 0.79% on the day as roles were reversed amongst Growth and Cyclicals. The Dow Industrials led stocks higher adding +0.77% as a tepid jobs report and a larger than expected drawdown on crude inventories lifted lagging sectors of the market.
WTI Crude moved above $82 while the US 10yr Treasury Yield inched higher to 4.259%. At the sector level XLE was the leader on the day with the XLU and XLF taking the silver and the bronze respectively amongst the large cap. sector SPDR’s. Lagging sectors were likely spurred by increasing speculation of future Fed. policy accommodation. Housing starts came in below expectations in the first signs that there may be some trouble with the consumer beyond the level of interest rates.
PMI’s and existing home sales are due to be released on Friday along with earnings from KMX and FDS. Futures for the S&P 500 and the Nasdaq opened in the green at the beginning of the session.
Eco Data Releases | Friday June 21st, 2024
| Date Time | Event | Survey | Actual | Prior | Revised | |
| 06/21/2024 09:45 | S&P Global US Manufacturing PMI | Jun P | 51 | — | 51.3 | — |
| 06/21/2024 09:45 | S&P Global US Services PMI | Jun P | 54 | — | 54.8 | — |
| 06/21/2024 09:45 | S&P Global US Composite PMI | Jun P | 53.5 | — | 54.5 | — |
| 06/21/2024 10:00 | Leading Index | May | -0.30% | — | -0.60% | — |
| 06/21/2024 10:00 | Existing Home Sales | May | 4.10m | — | 4.14m | — |
| 06/21/2024 10:00 | Existing Home Sales MoM | May | -1.00% | — | -1.90% | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Friday June 21st, 2024
Factor Friday
The iShares Momentum ETF (MTUM) has been rising in the near-term and recently made a higher high above May. However high beta stocks are rolling over vs. low vol. with the intermediate-term action in the ratio looking distributive in favor of the latter factor. The market is hinting at the arrival of our summer seasonal soft patch is my quick take.
- S&P 500, 1yr daily bar chart
- S&P High Beta Index / S&P Low Vol. Index
- iShares Momentum ETF (MTUM) / S&P 500
Sources: Bloomberg
