SWS Daily Market Update - September 14, 2021

The stock market dropped today, apparently in response to a less than anticipated rise in the CPI making it less likely that the Fed will pull back on its asset purchases by the end of the year. All three major indices declined. Major drops occurred in finance, energy and industrial stocks. It seems that concerns about spreading COVID infections and a slowing economy makes investors worried that the market is due for a correction from the current high valuations.

Consumer price index August: estimate 0.4%, previous 0.5%.

The consumer price index in August increased by 0.3%, lower than the predicted 0.4% and the 0.5% in July and 0.9% in June. Annual inflation came in at 5.3%, again lower than the previous 5.4%. Price declines occurred in used cars, auto insurance and airfares. The Core CPI, excluding food and energy, rose 0.1% in August compared to the predicted 0.3% and the lowest since February. On an annual basis the core CPI rose at a 4.0% rate, also lower than July. At first glance this supports the view that the increase in inflation over the past few months will be transient but other economists see ongoing inflationary pressures.

Real average hourly earnings increased 0.4% from July to August. Earnings decreased 0.9% from August 2020 to August 2021.

Economic news for September 15

Import price index August: estimate 0.3%, previous 0.3%

Industrial production August: estimate 0.5%, previous 0.9%

Capacity utilization August: estimate 76.4%, previous 76.1%​


The SP 500 is down by 0.57% to close at 4443.05. The index is down 1.49% over five days, down 2.17% over one month, up 0.81% over three months and up 23.51% over one year.

The trailing P/E is 31.41 compared to 36.58 one year ago and estimated future P/E 22.10. Dividend yield is currently 1.31 compared with 1.79 one year ago.

Leading stocks were ZBH up 4.74%, STE up 2.73%, TFX up 2.54%, PRGO up 2.40% and WST up 2.23%.

Trailing stocks were WYNN down 10.85%, LVS down 9.75%, CMCSA down 7.30%, DISH down 5.11% and EMN down 4.57%.

The Dow Jones industrial Average is down by 0.84% to close at 34577.57. The DOW is down 2.15% over five days, down 2.56% over one month, up 0.37% over three months and up 25.09% over one year.

The trailing P/E is 23.50 compared with 27.49 year ago and an estimated future P/E of 18.94. The current dividend yield is 1.85% compared with 2.20 one year ago.

Leading stocks were MSFT up 0.94%, CRM up 0.10%, KO up 0.07%, MCD down 0.03% and PG down 0.17%.

Trailing stocks were WBA down 1.95%, CAT down 1.88%, CVX down 1.81%, DOW down 1.76%, and JPM down 1.75%.

The NASDAQ composite is down by 0.45% and closed at 15037.76. NASDAQ is down 2.19% over five days, up 2.60% over one month, up 6.86% over 3 months and up 34.38% over one year.

Leading stocks were JCS up 38.59%, CYRN up 26.73%, VINO up 25.80%, CLMT up 17.43% and KZR up 17.41%.

Trailing stocks were ATER down 39.04%, SPRT down 38.22%, VRPX down 36.82%, RDHL down 32.66%, and FCUV down 25.06%.

The MidCap SP400 is down by 1.11% to close at 2673.25. The SP400 is down 2.01% for the past 5 days, down 0.71% for the past month, down 1.87% for the past 3 months and up 41.26% over the past year.

Leading stocks were CROX up 8.47%, NUVA up 4.56% and DECK up 4.25%.

Trailing stocks were NUS down 8.29%, ORI down 7.37% and ACHC down 6.98%

The SmallCap SP600 is down by 1.35% to close at 1319.26. The SP600 is down 2.74% for the past 5 days, down 0.31% for the past month, down 5.12% for the past 3 months and up 50.47% over the past year.

Leading stocks were MLAB up 8.19%, RGNX up 5.25% and CYTX up 5.15%.

Trailing stocks were IVC down 8.78%, MTRX down 8.34% and REX down 7.62%.

The CBOE VIX is up 0.46% and closed at 19.46. The VIX is up 7.28% over five days, up 8.65% over one month, up 14.34% over three months and down 23.95% over one year.

On the New York stock exchange 1022 stocks advanced and 2288 declined, while on Nasdaq 1320 advanced and 3173 declined.

There were 67 new 52 week highs and 56 new 52 week lows on NYSE with 73 new highs and 115 new lows on NASDAQ.

The 2 year Treasury note yield is 0.209% and 10 year is 1.284%. The 10 year yield is down 4.46% over five days, up 1.81% over one month, down 18.69% three months ago, and up 84.10% one year ago.

SP500 Sector Performance % change

Health Care -0.12

Information Technology -0.14

Consumer Discretionary -0.33

Real Estate -0.34

Utilities -0.41

Consumer Staples -0.60

Communication Services -0.88

Materials -1.17

Industrials -1.23

Financials -1.41

Energy -1.55

Health Care is down 2.88% over five days, down 3.42% over one month, down 6.13% over three months and up 24.58% over one year.

Energy has been up 0.11% over five days, up 0.33% over one month, down 13.83% over three months and up 48.92% over one year.

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