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SWS Daily Market Update - Aug 6, 2021


The SPX and Dow closed at record highs based on a strong employment report. Nasdaq composite dropped indicating a mixed opinion from investors on the significance of this news.

Payrolls increased by 943,000 in July compared with the estimated 845,00 and above the value of 850,000 in June, although the June value was revised up to 938,000. The increase in jobs was the most in 11 months. The unemployment rate dropped to 5.4% compared with June’s 5.9% and the estimate of 5.7%. This is the lowest rate since the pandemic. However, payrolls remain 5.7 million below the level before the pandemic. Individuals unemployed for more than 6 months (long term unemployed) dropped by a record 560,000 in July to 3.4 million.

Hourly wages increased by 0.4% in July, better than the 0.3% estimate. Wages rose 4% on an annual basis.


The increase in employment might be interpreted by the Fed as moving towards their stated goal of seeing substantial progress in the labor market before starting to decrease their $120 billion monthly asset purchases. Economic data next week will give information on inflationary pressures.

Consumer credit grew at a record rate in June as credit card use drove increased consumer spending. The rate in June was 37.7 billion, well above the estimated 24 billion. The value for May was 36.7 billion

Whole sale trade inventories increased 1.1% in June, above the estimated 0.8%. The May value was 1.3%. Inventories increased 10.5% in June on an annual basis.

Economic news for August 9 will be job openings for June. The last report was 9.2 million. ​


Markets

The SP 500 is up by 0.17% to close at 4436.52. The index is up 0.94% over five days, up 1.53% over one month, up 4.82% over three months and up 32.38% over one year.

The trailing P/E is 33.75 compared with 30.59 one year ago and estimated future P/E 22.52. Dividend yield is currently 1.31 compared with 1.90 one year ago.

Leading stocks were CTVA up 8.01%, DXC up 6.12%, BLL up 5.52%, MNST up 5.46% and AAL up 4.71%.

Trailing stocks were AMGN down 1.64%, HD down 0.98%, PG down 0.76%, VTR down 2.80% and TWTR down 2.76%.


The Dow Jones industrial Average is up by 0.41% to close at 35208.51. The DOW is down 0.78% over five days, up 0.97% over one month, up 1.24% over three months and up 28.34% over one year.

The trailing P/E is 23.91 compared with 26.68 year ago and an estimated future P/E of 19.45. The current dividend yield is 1.79% compared with 2.38 one year ago.

Leading stocks were GS up 3.54%, JPM up 2.84%, DOW up 1.64%, TRV up 1.49% and AXP up 1.02%.

Trailing stocks were AMGN down 1.64%, HD down 0.98%, PG down 0.76%, NKE down 0.60%, and AAPL down 0.48%.


The NASDAQ composite is down by 0.40% and closed at 14835.76. NASDAQ is up 1.11% over five days, up 0.91% over one month, up 7.88% over 3 months and up 34.74% over one year.

Leading stocks were KXIN up 89.22%, ANY up 41.28%, WPRT up 28.39%, WORX up 26.27% and BYSI up 23.82%.

Trailing stocks were DRNA down 28.14%, ICAD down 23.57%, YMAB down 21.60%, SPPI down 21.54%, and TRUE down 20.15%.


The MidCap SP400 is up by 0.41% to close at 2717.36. The SP400 is up 0.51% for the past 5 days, up 0.40% for the past month, down 1.91% for the past 3 months and up 40.18% over the past year.

Leading stocks were RAMP up 22.25%, SYNA up 16.47% and PCTY up 10.27%.

Trailing stocks were QDEL down 13.19%, PGNY down 12.83% and OLED down 10.52%


The SmallCap SP600 is up by 1.18% to close at 1356.27. The SP600 is up 1.12% for the past 5 days, down 0.24% for the past month, down 1.31% for the past 3 months and up 48.77% over the past year.

Leading stocks were HCI up 17.60%, JYNT up 15.17% and GCI up 14.23%.

Trailing stocks were SPPI down 21.54%, COLL down 17.31% and AMEH down 13.73%.


The CBOE VIX dropped by 6.54% and closed at 16.15. The VIX is down 11.46% over five days, down 0.19% over one month, down 3.24% over three months and down 27.29% over one year.


On the New York stock exchange 1970 stocks advanced and 1316 declined, while on Nasdaq 2256 advanced and 2098 declined.

There were 183 new 52 week highs and 35 new 52 week lows on NYSE with 165 new highs and 81 new lows on NASDAQ.


The 2 year Treasury note yield is 0.208% and 10 year is 1.303%. The 10 year yield is up 7.5% over five days, down 5.57% over one month, down 27.4% three months ago, and up 73.5% one year ago.


SP500 Sector Performance % change

Financials +2.01

Materials +1.47

Energy +0.93

Industrials +0.42

Communication Services -0.02

Consumer Staples -0.05

Utilities -0.08

Health Care -0.10

Information Technology -0.12

Real Estate -0.23

Consumer Discretionary -0.73

Financials has been up 3.56% over five days, up 3.01% over one month, up 0.20% over three months and up 52.53% over one year.

Consumer Discretionary has been down 2.41% over five days, down 1.29% over one month, up 2.57% over three months and up 23.34% over one year.


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