US Stock Indexes Finished Sharply Lower Thursday

Posted by: : Paul EbelingPosted on: June 4, 2015 US Stock Indexes Finished Sharply Lower Thursday
 

US Stock Indexes Finished Sharply Lower Thursday

$XRT, $DISH, $FIVE, $TMUS

DJIA +0.5% YTD, NAS 100 +6.8% YTD,  S&P 500 +1.8% YTD, Russell 2000 +3.9% YTD

DJIA -170.69 at 17905.58, NAS 100 -40.11 at 5059.13, S&P 500-18.23 at 2095.84

Volume: trade was relatively light, 710-M/shares exchanged hands on the NYSE

The US stock market finished the Thursday session sharply lower. The S&P 500 (-0.8%) pushed below its 50-Day MA at 2,100.

The IMF’s Christine Lagarde urged the Fed to delay its first rate hike until 1-H of Y 2016. A lowered growth forecast was cited to support that argument with the IMF now expecting US Y 2015 GDP growth of 2.5%, down from 3.1%.

US Treasuries marked fresh highs following the outlook change at the IMF, and built on their gains in the afternoon with the 10-yr yield falling 6 bpts to 2.31%. The US Dollar (.DXY) Index at 95.49 ended flat after erasing its overnight losses.

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All 1- stock sectors finished in the Red with most growth-sensitive groups showing relative weakness.

The energy (-1.2%) and materials (-1.3%) stock sectors spent most of the session behind other groups with energy pressured by a 2.8% fall in Crude Oil, which ended the pit session at 58.00 bbl ahead of Friday’s semiannual OPEC meeting.

The cyclical stock sectors

The industrials (-1.1%) and technology (-0.9%) lost close to 1.0% each, while the consumer discretionary stock sector (-0.7%) stayed ahead of the broad market.

Five Below (NASDAQ:FIVE) 37.77, +2.67, or +7.6% showed a 1-cent beat and raised its guidance for the FY.

SPDR S&P Retail ETF (NYSEArca:XRT) 99.85, -0.09, or – 0.1%. Dish Network (NASDAQ:DISH) 74.25, +3.44, or + 4.9% after it was reported the company has engaged in merger talks with T-Mobile US (NYSE:TMUS) 39.34, +1.01.

The utilities stock sector (-0.2%) finished ahead of other groups thanks to Thursday’s drop in US Treasury yields. The rate-sensitive sector extended this week’s decline to 2.9%. .

Economic data

  • The initial claims level declined to 276,000 for the week ending 30 May from an revised 284,000 from 282,000 for the week ending 23 May, consensus expected a drop to 280,000
  • Nonfarm productivity in Q-1 was revised down to -3.1% from an originally reported -1.9% in the advance release, consensus expected a revision to -2.9%
  • The Challenger Job Cuts report for May showed a 22.5% Y-Y decline to follow the previous 52.8% spike

Friday

The NFPs report for May, consensus 225-K, will be released at 8:30a EDT, and the Consumer Credit report for April, consensus at 16.80-B will cross the wire at 03:00p EDT.

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

Trade FX, Equities and Options with the World's Leading Platform Open an account here , call us at 305 4904 116, or email us to get started.

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