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SWS Daily Market Update - August 31, 2021


The major indices were down slightly today but August was another strong month. The SPX rose 2.9% and has now climbed for seven straight months, Dow was up for the second month in a row and finished 0.2% higher and Nasdaq climbed 4% and has been up for three consecutive months. The main factors producing the record high prices were strong earnings in the second quarter, low volumes typical of the summer and reassurance from the Fed that the spike in inflations was likely to be transient and would not require an increase in interest rates. The main worry is the continuing spread of the Delta COVID variant and whether this would slow consumer spending.


The Conference Board consumer confidence index dropped in August to 113.8 from 124.1 in July. The estimate had been 123.1. This is the lowest level since February when the index was 95.2. The Present Situation Index was 147.2 compared with 157.2 while expectations dropped from 103.8 to 91.4. The main concern expressed was the Delta variant infections and also the possibility of inflation. It remains unknown if this drop in confidence will cause consumers to spend less in coming months.


The S&P Case-Shiller national home price index showed an 18.6% annual gain in June, up form 16.8% in July. This is the 13th straight month of increasing prices and the highest rate on more than 30 years. The gains are spread evenly across the country. The price surge is thought to be driven by the pandemic causing buyers to move from cities to suburban areas.


Economic news for September 1

ISM’s Purchasing Manager’s Index (Manufacturing), August: estimate 58.6%, previous 59.5

Markit manufacturing PMI (final) August estimate 61.2, previous 61.2

ADP employment report August estimate 600,000, previous 330,000

Construction spending July estimate 0.2%, previous 0.1%​


Markets

The SP 500 is down by 0.13% to close at 4522.68. The index is up 0.81% over five days, up 2.25% over one month, up 7.63% over three months and up 28.24% over one year.

The trailing P/E is 31.26 compared to 36.19 one year ago and estimated future P/E 22.26. Dividend yield is currently 1.31 compared with 1.75 one year ago.

Leading stocks were APA up 4.39%, WBA up 4.36%, DISCA up 3.55%, DISCK up 3.22% and VIAC up 3.03%.

Trailing stocks were WFC down 5.60%, NXPI down 5.50%, KSU down 4.39%, UAA down 4.06% and UA down 3.74%.


The Dow Jones industrial Average is down by 0.11% to close at 35360.73. The DOW is down 0.02% over five days, up 0.70% over one month, up 2.27% over three months and up 23.44% over one year.

The trailing P/E is 24.04 compared with 28.12 year ago and an estimated future P/E of 19.26. The current dividend yield is 1.78% compared with 2.14 one year ago.

Leading stocks were WBA up 4.36%, AXP up 1.03%, IBM up 0.99%, MCD up 0.92% and BA down 0.85%.

Trailing stocks were NKE down 1.96%, DOW down 1.69%, CVX down 1.65%, V down 0.92%, and AAPL down 0.84%.


The NASDAQ composite is down by 0.04% and closed at 15259.24. NASDAQ is up 1.59% over five days, up 3.37% over one month, up 11.09% over 3 months and up 27.80% over one year.

Leading stocks were UNAM up 59.00%, ELYS up 42.98%, SPOK up 26.24%, PXLW up 24.60% and VLON up 23.99%.

Trailing stocks were SQBG down 57.57%, RNXT down 37.64%, REE down 33.70%, TNYA down 21.45%, and PSTX down 19.33%.


The MidCap SP400 is down by 0.27% to close at 2753.16. The SP400 is up 0.99% for the past 5 days, up 1.63% for the past month, up 0.31% for the past 3 months and up 41.84% over the past year.

Leading stocks were LGND up 9.21%, THS up 6.21% and CNK up 4.94%.

Trailing stocks were AXON down 5.69%, OLLI down 5.52% and IRDM down 5.06%


The SmallCap SP600 is up by 0.01% to close at 1366.73. The SP600 is up 1.50% for the past 5 days, up 1.60% for the past month, down 1.92% for the past 3 months and up 50.30% over the past year.

Leading stocks were SPOK up 26.24%, ANIP up 10.69% and EGRX up 10.22%.

Trailing stocks were AMWD down 12.36%, CHS down 11.47% and MD down 8.65%.


The CBOE VIX is up 1.79% and closed at 16.48. The VIX is down 1.85% over five days, down 8.29% over one month, down 5.72% over three months and down 37.98% over one year.


On the New York stock exchange 1837 stocks advanced and 1466 declined, while on Nasdaq 2680 advanced and 1733 declined.

There were 147 new 52 week highs and 33 new 52 week lows on NYSE with 152 new highs and 56 new lows on NASDAQ.


The 2 year Treasury note yield is 0.219% and 10 year is 1.333%. The 10 year yield is down 1.6% over five days, up 14.9% over one month, down 25.5% three months ago, and up 106.35% one year ago.


SP500 Sector Performance % change

Real Estate +0.62

Consumer Discretionary +0.37

Communication Services +0.27

Consumer Staples +0.17

Financials +0.09

Utilities -0.10

Health Care -0.13

Industrials -0.28

Materials -0.31

Information Technology -0.56

Energy -0.73

Real Estate has been up 2.58% over five days, up 2.24% over one month, up 8.50% over three months and up 32.85% over one year.

Energy has been down 0.12% over five days, down 3.94% over one month, down 10.58% over three months and up 37.19% over one year.


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