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SWS Daily Report - June 9, 2021


Overview

The major indices all dropped today while waiting for the consumer price index report tomorrow. The number could provide an indication as to the probability will maintain or change its monetary policy because of inflation expectations. The question remains how persistent the expected increase in inflation will be. The VIX increased because of this uncertainty in the minds of investors.

Health care turned in the best performance while financials did the worst. The SP500 continues to move in a very narrow range over the past two weeks, but is up 12% for 2021. Stocks continue to trade near all time highs.


Economy

There was little economic data today ahead of major releases tomorrow. US wholesale inventories climbed in April by 0.8%, in line with expectations. The increase in March was 1.2%. Inventories are 5.2% higher than one year ago. Inventories are growing after being depleted because of a surge in domestic demand during the first quarter. Ongoing supply chain problems could interfere with the ability to maintain inventories going forward.


Economic reports June 10

Unemployment Insurance Weekly Claims Report – Initial Claims

Consumer Price Index

University of Michigan Consumer Survey – preliminary

Producer Price Index

Advance Monthly Retail Sales

Industrial production and capacity utilization

New Residential Construction – housing starts and building permits.


Markets

The SP 500 dropped 0.18% to close at 4220. The index has been up 0.3% over five days, up 3.9% over one month, up 8.2% over three months and up 32.3% over one year.

The trailing P/E is 37.0 compared with 27.2 one year ago and estimated future P/E 22.5. Dividend yield is currently 1.38 compared with 1.98 one year ago.

Leading stocks were CTLT up 3.1%, REGN up 3.1%, SRE up 3.0% BIIB up 2.9% and FOXA up 2.9%.

Trailing stocks were DISH down 7.2%, CPB down 6.5%, BF.B down 5.7%, UPS down 4.2% and UAA down 3.7%.


The Dow Jones industrial Average was down 0.44% to close at 34447. The DOW is down 0.4% over five days, up 2.6% over one month, up 6.7% over three months and up 27.6% over one year.

The trailing P/E is 29.5 compared with 23.0 year ago and an estimated future P/E of 20.5. The current dividend yield is 1.80% compared with 2.38 one year ago.

Leading stocks were MRK up 2.3%, JNJ up 1.4%, AMGN up 1.1%, IBM up 1.1% and MSFT up 0.4%.

Trailing stocks were CAT down 2.3%, BA down 1.9%, AXP down 1.5%, JPM down 1.3% and TRV down 1.2%.


The NASDAQ composite dropped 0.09% and closed at 13,912. NASDAQ has been up 1.1% over five days, up 6.8% over one month, up 6.5% over 3 months and up 38.8% over one year.

Leading stocks were AEMD up 388.2%, AMSWA up 39.1%, CLNE up 31.5%, NCTY up 30.7% and SPI up 28.3%

Trailing stocks were ATOS down 27.5%, CLOV down 23.6%, LEDS down 21.8%, NEXT down 21.4% and CARV down 16.5%


The MidCap SP400 dropped 0.65% to close at 2732. The SP400 has been up 0.2% for the past 5 days, up 3.9% for the past month, up 5.8% for the past 3 months and up 47.1% over the past year.

Leading stocks were CLF up 14.6%, WWE up 10.9% and TR up 4.1%.

Trailing stocks were WEN down 12.7%, SAM down 4.9% and CASY down 4.6%


The SmallCap SP600 dropped 0.86% to close at 1402. The SP600 has been up 0.7% for the past 5 days, up 8.3% for the past month, up 2.6% for the past 3 months and up 62.4% over the past year.

Leading stocks were GEO up 38.4%, CXW up 17.9% and IVR up 17.5%.

Trailing stocks were UNFI down 15.7%, CMTL down 13.8% and CHS down 11.0%.


The CBOE VIX rose 4.8% and closed at 17.89. The VIX is up 2.4% over five days, down 35.2% over one month, down 20.7% over three months and down 35.1% over one year.


On the New York stock exchange 1574 stocks advanced and 1753 declined, while on Nasdaq 1995 advanced and 2280 declined.


There were 373 new 52 week highs and 5 new 52 week lows on NYSE with 208 new highs and 13 new lows on NASDAQ.


The 2 year Treasury note yield is 0.16% and 10 year is 1.47%, the lowest it has been in one month. The 10 year yield was 1.6% one month ago, 1.55% three months ago, 0.95% six months ago and 0.84% one year ago.


SP500 Sector Performance % change


Health Care + 1.00

Utilities + 0.85

Real Estate + 0.16

Information technology + 0.06

Communication services - 0.15

Consumer staples - 0.43

Consumer discretionary - 0.46

Energy - 0.56

Materials - 0.76

Industrials - 1.03

Financials - 1.06


Health Care has been up 1.7% over five days, up 1.2% over one month, up 8.5% over three months and up 20.2% over one year. The health care segment equipment and services was up 0.23% while pharmaceuticals/biotech and life sciences was up 1.73%. Earnings in health care were up 24% year over year and beat earnings expectations 83% of the time in the first quarter of 2021.


Financials has been down 1.5% over five days, up 2.9% over one month, up 9.5% over three months and up 50.2% over one year. Financial segments include insurance down 1.06%, banks down 1.43% and diversified down 0.73%.

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