The markets pulled back today with the SPX and DOW dropping although the Nasdaq did gain. Oil prices also dropped. The major concerns remain the increasing number of COVID infections across the country and much of the world, as well as less fiscal stimulus going forward. While these issues have been around for a while, the lack of additional positive news to provide a catalyst for higher prices, led to the market decline from record highs. This volatility in the market has been present for some time and appears likely to continue.
The 10 year Treasury note rose for the fifth straight day to 1.316% from 1.288%.
The labor department reported that Job openings in June rose to 10.1 million, above the estimate of 9.3 million and the 9.5 million in May. The June value represents a record high. The number of unfilled jobs reflects the difficulty employers have in filling vacancies. This labor supply restraint is blamed on pandemic related issues such as the need to provide child care, worry about the risk of COVID and generous unemployment benefit packages.
The number of vacancies exceeded the number of hires by 3.4 million, similar to the May value.
The shortage has resulted in impressive pay increases for workers in a wide range of industries.
Regional Fed presidents in Atlanta and Richmond both indicated that the economy, including the labor market, has been making progress towards its goals of maximum employment and 2% inflation. Thomas Barkin of the Richmond Fed indicated that he would like to see the employment population ratio around 59%, above the current 58.4% but still below the 61% in February 2020. These comments are concerning to investors as they could indicate that the Fed will start decreasing asset purchases and/or raising interest rates sooner that currently believed.
Economic news for August 10
Preliminary reports on Productivity and Unit labor costs for the second quarter.
The SP 500 is down by 0.09% to close at 4432.35. The index is up 1.03% over five days, up 1.09% over one month, up 5.82% over three months and up 31.90% over one year.
The trailing P/E is 31.24 compared with 30.59 one year ago and estimated future P/E 22.37. Dividend yield is currently 1.33 compared with 1.90 one year ago.
Leading stocks were MRNA up 17.10%, TSN up 8.69%, VTRS up 5.96%, MOS up 3.40% and NUE up 3.33%.
Trailing stocks were APD down 5.18%, DRI down 4.47%, MAR down 3.16%, OXY down 2.96% and VIAC down 2.92%.
The Dow Jones industrial Average is down by 0.30% to close at 35101.85. The DOW is up 0.76% over five days, up 0.30% over one month, up 1.03% over three months and up 26.30% over one year.
The trailing P/E is 24.00 compared with 26.72 year ago and an estimated future P/E of 19.35. The current dividend yield is 1.79% compared with 2.37 one year ago.
Leading stocks were WBA up 0.72%, PG up 0.54%, GS up 0.50%, BA up 0.41% and TRV up 0.36%.
Trailing stocks were CVX down 1.67%, UNH down 1.02%, AMGN down 0.98%, IBM down 0.84%, and MCD down 0.67%.
The NASDAQ composite is up by 0.16% and closed at 14860.18. NASDAQ is up 1.22% over five days, up 0.86% over one month, up 10.88% over 3 months and up 35.48% over one year.
Leading stocks were GNOG up 50.77%, CRTX up 47.32%, TEDU up 40.30%, CXDC up 35.48% and SIC up 29.79%.
Trailing stocks were AXSM down 46.50%, ATER down 33.29%, BIVI down 29.96%, BLUE down 27.45%, and MOXC down 20.79%.
The MidCap SP400 is down by 0.28% to close at 2709.80. The SP400 is up 0.66% for the past 5 days, down 0.13% for the past month, down 1.00% for the past 3 months and up 39.17% over the past year.
Leading stocks were SGMS up 9.26%, CRNC up 8.62% and SAFM up 7.41%.
Trailing stocks were CAR down 4.73%, PEB down 4.44% and CNK down 3.90%
The SmallCap SP600 is down by 0.87% to close at 1356.27. The SP600 is up 0.71% for the past 5 days, down 1.52% for the past month, at 0.00% for the past 3 months and up 46.06% over the past year.
Leading stocks were VRTV up 18.75%, GKOS up 6.51% and PRA up 6.17%.
Trailing stocks were HCC down 8.40%, RDNT down 8.31% and ANIP down 7.14%.
The CBOE VIX is up by 3.53% and closed at 16.72. The VIX is down 14.08% over five days, up 3.40% over one month, down 14.95% over three months and down 24.45% over one year.
On the New York stock exchange 1251 stocks advanced and 2038 declined, while on Nasdaq 2051 advanced and 2284 declined.
There were 110 new 52 week highs and 29 new 52 week lows on NYSE with 122 new highs and 76 new lows on NASDAQ.
The 2 year Treasury note yield is 0.224% and 10 year is 1.325%. The 10 year yield is up 14.7% over five days, down 4.0% over one month, down 27.9% three months ago, and up 74.2% one year ago.
SP500 Sector Performance % change
Health Care +0.38
Consumer Staples +0.32
Communication Services +0.04
Consumer Discretionary -0.13
Information Technology -0.35
Real Estate -0.42
Health Care has been up 0.88% over five days, up 3.37% over one month, up 7.52% over three months and up 25.91% over one year.
Real Estate has been up 0.27% over five days, up 0.44% over one month, up 9.49% over three months and up 28.71% over one year.