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SWS Daily Market Update - July 22, 2021


Overview

Market continued to climb for the third consecutive day following the big decline on Monday. The major indices are within 1% of the all time record high values. The increase appears to have been driven by good economic news and earnings reports. The majority of SPX companies have beaten analyst expectations. The 10 year Treasury yield dropped slightly to 1.264% while Oil prices rose 2%.


Economic news for July 22

Initial jobless claims, which are a proxy for layoffs, rose this week to 419,000, up 51,000 from last week. The increase is thought to be driven by losses in the auto industry caused by supply constraints. Continuing weekly claims, however, declined to another pandemic low of 3.24 million. Continuing payments made through all unemployment benefit programs continued to drop by 1.3 million to 12.6 million, the lowest value since March 2020.


Existing home sales increased in June after 4 months of declines. Sales were up 1.4% compared with May and up 22.9% year over year. The median house price was up 23.4% from one year ago and is now $363,000. At the current pace of sales, it would take 2.6 months to exhaust inventory, down from 3.9 months one year ago. A 6-7 month supply is considered a good balance between supply and demand.


The Conference Board Leading economic indicators increased 0.7% in June to 115.1 after increasing 1.7% in May and 1.3% in April. This suggest continued economic growth with real GDP predicted at 6.6% in 2021 and 3.8% in 2022.


Markets

The SP 500 is up by 0.20% to close at 4367.48. The index is up 0.17% over five days, up 2.37% over one month, up 5.62% over three months and up 34.98% over one year.

The trailing P/E is 36.60 compared with 29.34 one year ago and estimated future P/E 22.57. Dividend yield is currently 1.35 compared with 1.90 one year ago.

Leading stocks were DPZ up 14.55%, FE up 4.29%, CSX up 3.48%, DHR up 3.27% and EBAY up 3.15%.

Trailing stocks were TXN down 5.32%, CCI down 4.51%, LVS down 4.45%, LUV down 3.46% and PBCT down 3.35%.


The Dow Jones industrial Average is up by 0.07% to close at 34823.35. The DOW is down 0.47% over five days, up 1.83% over one month, up 2.98% over three months and up 30.66% over one year.

The trailing P/E is 26.15 compared with 23.33 year ago and an estimated future P/E of 19.80. The current dividend yield is 1.80% compared with 2.39 one year ago.

Leading stocks were CRM up 2.55%, MSFT up 1.68%, NKE up 1.61%, DOW up 1.26% and CSCO up 1.22%.

Trailing stocks were TRV down 2.69%, JPM down 1.26%, CVX down 1.00%, DIS down 0.99%, and AXP down 0.93%.


The NASDAQ composite is up by 0.36% and closed at 14684.60. NASDAQ dropped 0.97% over five days, up 2.19% over one month, up 6.27% over 3 months and up 40.37% over one year.

Leading stocks were IPA up 136.49%, NRXP up 62.71%, UPC up 44.53%, SGMA up 29.96% and PRFX up 29.94%.

Trailing stocks were SNTG down 62.86%, MCRB down 61.83%, JUPW down 26.88%, TCON down 24.54%, and MTSL down 23.81%.


The MidCap SP400 dropped by 0.92% to close at 2649.63. The SP400 is up 0.04% for the past 5 days, down 1.94% for the past month, down 1.88% for the past 3 months and up 42.10% over the past year.

Leading stocks were CROX up 9.96%, QDEL up 7.65% and PZZA up 6.82%.

Trailing stocks were GO down 7.45%, SLM down 6.03% and BCO down 5.31%


The SmallCap SP600 dropped by 1.79% to close at 1309.16. The SP600 is down 0.54% for the past 5 days, down 5.64% for the past month, down 1.26% for the past 3 months and up 51.15% over the past year.

Leading stocks were RGP up 14.24%, OSUR up 6.94% and ENDP up 3.60%.

Trailing stocks were NBRWF down 15.58%, PBF down 10.71% and CYH down 9.91%.


The CBOE VIX dropped by 1.23% and closed at 17.69. The VIX is up 4.00% over five days, up 10.77% over one month, down 5.45% over three months and down 32.17% over one year.


On the New York stock exchange 1018 stocks advanced and 2259 declined, while on Nasdaq 1506 advanced and 2870 declined.

There were 77 new 52 week highs and 22 new 52 week lows on NYSE with 92 new highs and 53S new lows on NASDAQ.


The 2 year Treasury note yield is 0.211% and 10 year is 1.280%. The 10 year yield is down 1.9% over five days, down 21.3% over one month, down 26.5% three months ago, and up 69.5% one year ago.


SP500 Sector Performance % change

Information Technology +0.71

Health Care +0.66

Consumer Discretionary +0.58

Communication Services +0.41

Utilities +0.17

Materials +0.03

Consumer Staples -0.26

Industrials -0.35

Real Estate -0.69

Financials -1.04

Energy -1.13


Information Technology has been up 0.78% over five days, up 5.18% over one month, up 8.77% over three months and up 43.49% over one year.

Utilities has been down 2.72% over five days, down 11.37% over one month, up 28.88% over three months and up 29.04% over one year.


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