Another bad day for the markets with the SPX dropping - 1.3%, Dow down – 0.9% and Nasdaq off – 2.1%. Big tech stocks such as Facebook led the downturn, dropping 4.9%. The prospect of higher interest rates means a higher discount rate applied to future earnings, and does not support the current high valuations for these companies. The volatility in recent weeks is continuing as uncertainty remains about COVID, the chances of the infrastructure spending bill passing Congress, climbing inflation fears and the economic problems in China.
For the NYSE advances were 1190, decline 2181 with 116 new 52 week highs and 96 52 week lows. On Nasdaq there were 1249 advancing, 3346 declining, 102 new highs and 252 new lows. The leading sector was Energy up 1.63% and trailing was Information Technology down – 2.36%. The CBOE Volatility index was up 8.6%% to 22.96.
September has kept its tradition as being a bad month for stocks (SPX down 4.8%, worst since March 2020) and a bad September often predicts a bad October.
Factory orders increased 1.2% in August after a 0.7% rise in July. The forecast was 1.0%. This shows continued strength in manufacturing despite the ongoing restrictions in labor and raw materials.
The SP 500 is down by 1.30% to close at 4300.46. The index is down 3.21% over five days, down 5.18% over one month, down 1.19% over three months and up 26.16% over one year.
The trailing P/E is 30.04 compared to 36.94 one year ago and estimated future P/E 21.47. Dividend yield is currently 1.38 compared with 1.81 one year ago.
Leading stocks were DVN up 5.30%, FANG up 4.57%, PSX up 4.33%, MRO up 4.14% and ES up 3.76%.
Trailing stocks were SLVM down 15.12%, ENPH down 6.65%, TWTR down 5.79%, EW down 5.26% and IPGP down 4.92%.
The Dow Jones industrial Average is down by 0.94% to close at 34002.92. The DOW is down 2.48% over five days, down 3.86% over one month, down 2.25% over three months and up 20.80% over one year.
The trailing P/E is 23.09 compared with 27.62 year ago and an estimated future P/E of 18.56. The current dividend yield is 1.87% compared with 2.20 one year ago.
Leading stocks were MRK up 2.09%, IBM up 0.55%, CVX up 0.37%, VZ up 0.37% and MCD up 0.06%.
Trailing stocks were V down 2.49%, AAPL down 2.46%, MSFT down 2.07%, CRM down 1.60%, and GS down 1.54%.
The NASDAQ composite is down by 2.14% and closed at 14255.48. NASDAQ is down 4.77% over five days, down 7.21% over one month, down 2.62% over 3 months and up 25.79% over one year.
Leading stocks were XENE up 101.92%, ESBK up 68.15%, LGHL up 26.00%, VERB up 18.46% and USWS up 16.41%.
Trailing stocks were XP down 71.65%, GMBL down 24.77%, PROG down 21.79%, RGNX down 19.74%, and PALT down 16.19%.
The MidCap SP400 is down by 0.61% to close at 2667.23. The SP400 is down 2.06% for the past 5 days, down 3.38% for the past month, down 1.56% for the past 3 months and up 37.06% over the past year.
Leading stocks were MUR up 5.01%, EQT up 4.17% and OGS up 3.63%.
Trailing stocks were STAA down 8.70%, IIVI down 8.32% and RUN down 7.99%
The SmallCap SP600 is down by 0.42% to close at 1351.72. The SP600 is down 1.29% for the past 5 days, down 1.31% for the past month, down 1.31% for the past 3 months and up 50.79% over the past year.
Leading stocks were CEIX up 13.43%, NBRWF up 12.00% and PVAC up 10.68%.
Trailing stocks were RGNX down 19.74%, PCRX down 13.22% and TRHC down 11.41%.
The CBOE VIX is up 22.96% and closed at 22.96. The VIX is up 22.39% over five days, up 39.91% over one month, up 52.36% over three months and down 17.88% over one year.
On the New York stock exchange 1190 stocks advanced and 2181 declined, while on Nasdaq 1249 advanced and 3346 declined.
There were 116 new 52 week highs and 96 new 52 week lows on NYSE with 102 new highs and 252 new lows on NASDAQ.
The 2 year Treasury note yield is 0.282% and 10 year is 1.485%. The 10 year yield is down 5.6% over five days, up 11.2% over one month, down 13.4% three months ago, and up 74.2% one year ago.
SP500 Sector Performance % change
Real Estate +0.09
Consumer Staples -0.36
Consumer Discretionary -1.07
Health Care -1.49
Communication Services -2.11
Information Technology -2.36
Energy is up 3.94% over five days, up 14.21% over one month, up 0.50% over three months and up 81.44% over one year.
Information Technology has been down 4.67% over five days, down 7.06% over one month, down 1.32% over three months and up 25.71% over one year.