The SPX and Dow rose to new records today as the market responded well to inflation data and continued hope that the $1 trillion infrastructure bill, which has passed the Senate, will eventually pass the house and be put into effect. Industrial stocks were strong as expected because of the amount of building that will take place as a result of the legislation. Material stocks also did well, gaining 1.4%. Nasdaq dropped because of continued weakness in technology stocks.
There was also relatively good news about inflation prospects. The Consumer Price Index rose by 0.5% in July and 5.4% on an annual basis, close to the predicted 5.3%. The increase in June was much higher at 0.9%. The core CPI, which excludes food and energy, rose by 0.3% in July, slightly below the predicted 0.4%. The annual increase in Core CPI was 4.3%. The July results ended the series of higher than expected inflation numbers, although it remains to be seen whether this represents a one month exception or a true inflection point that shows a moderation in the rate of rise of inflation. However, inflation is much higher than before the pandemic.
Economic news for August 12
Initial jobless claims: estimate 375,000; previous 385,000
Continuing jobless claims: previous 2.93 million
Producer Price Index July: estimate 0.6%; previous 1.0%
The SP 500 is up by 0.25% to close at 4447.70. The index is up 1.02% over five days, up 1.68% over one month, up 9.47% over three months and up 31.58% over one year.
The trailing P/E is 31.24 and estimated future P/E 22.37. Dividend yield is currently 1.33.
Leading stocks were NLOK up 8.70%, URI up 4.98%, NUE up 3.91%, PCAR up 3.80% and MHK up 3.71%.
Trailing stocks were MRNA down 15.64%, PRGO down 12.57%, PFE down 3.90%, ABMD down 3.85% and ANTM down 2.58%.
The Dow Jones industrial Average is up by 0.62% to close at 35484.97. The DOW is up 1.99% over five days, up 1.58% over one month, up 5.65% over three months and up 26.84% over one year.
The trailing P/E is 24.19 compared with 28.33 year ago and an estimated future P/E of 19.35. The current dividend yield is 1.77% compared with 2.27 one year ago.
Leading stocks were CAT up 3.55%, WBA up 2.66%, DOW up 1.77%, HD up 1.67% and BA up 1.57%.
Trailing stocks were V down 1.26%, UNH down 0.98%, NKE down 0.58%, CRM down 0.46%, and KO down 0.12%.
The NASDAQ composite is down by 0.16% and closed at 14765.14. NASDAQ is down 0.10% over five days, up 0.82% over one month, up 13.30% over 3 months and up 34.08% over one year.
Leading stocks were RANI up 50.29%, DYAI up 47.08%, UPST up 26.18%, CWBR up 25.58% and TASK up 22.13%.
Trailing stocks were HYRE down 48.48%, APPH down 28.91%, BDSX down 26.32%, WW down 24.56%, and OCX down 18.60%.
The MidCap SP400 is up by 0.83% to close at 2741.91. The SP400 is up 2.26% for the past 5 days, up 3.22% for the past month, up 4.30% for the past 3 months and up 40.02% over the past year.
Leading stocks were HAE up 7.29%, SGMS up 5.56% and NCR up 5.46%.
Trailing stocks were WW down 24.56%, GO down 10.54% and AMED down 4.46%
The SmallCap SP600 is up by 0.71% to close at 1366.76. The SP600 is up 3.40% for the past 5 days, up 3.29% for the past month, up 5.59% for the past 3 months and up 47.89% over the past year.
Leading stocks were PDFS up 15.79%, LL up 6.96% and HCC up 6.86%.
Trailing stocks were ENDP down 10.80%, EPAY down 7.92% and KLIC down 5.07%.
The CBOE VIX is down by 4.35% and closed at 16.06. The VIX is down 10.63% over five days, down 1.65% over one month, down 41.79% over three months and down 27.92% over one year.
On the New York stock exchange 2205 stocks advanced and 1084 declined, while on Nasdaq 2323 advanced and 2023 declined.
There were 180 new 52 week highs and 34 new 52 week lows on NYSE with 145 new highs and 117 new lows on NASDAQ.
The 2 year Treasury note yield is 0.217% and 10 year is 1.337%. The 10 year yield is up 15.3% over five days, down 0.8% over one month, down 36.3% three months ago, and up 65.8% one year ago.
SP500 Sector Performance % change
Real Estate +0.50
Consumer Staples +0.31
Consumer Discretionary +0.12
Communication Services +0.03
Information Technology +0.03
Materials has been up 4.17% over five days, up 5.08% over one month, up 1.06% over three months and up 37.93% over one year.
Health Care has been down 1.31% over five days, up 2.44% over one month, up 8.36% over three months and up 23.08% over one year.