US Stock Market Finished Flat To Little Changed

Posted by: : Paul EbelingPosted on: October 27, 2014 US Stock Market Finished Flat To Little Changed

US Stock Market Finished Flat To Little Changed

GDX, SLX, CLF, MRK, AGN

DJIA +1.5% YTD, S&P 500 +6.1% YTD, NAS 100+7.4% YTD, Russell 2000 -3.9% YTD

DJIA +12.53 at 16817.94, NAS 100 +2.22 at 4485.94, S&P 500 -2.95 at 1961.63

Volume: trade came in with 741-M/shares changing hands on the NYSE.

The US stock market began the week on a cautious note. The S&P 500 slipped below its 100-Day MA at 1962 and finished lower by 0.2%, the DJIA finished +0.1% on the session.

US stock  indices saw selling pressure at the open from 2 commodity-linked sectors that spent the entire session at the bottom of the board.

The energy stock sector (-2.0%) suffered from a Goldman Sachs downgrade of several major industry players on expectations that Crude Oil will trade between 70-80 bbl.

The materials stock sector (-2.1%) saw broad pressure.

Miners lagged with the Market Vectors Gold Miners ETF (NYSEArca:GDX) 20.11, -0.36 falling 1.8%, while steelmakers faced aggressive selling. The Market Vectors Steel ETF (NYSEArca:SLX) 41.99, -1.15 lost 2.7%, and Cliffs Natural Resources (NYSE:CLF) 9.22, -0.41 down 4.3% ahead of its earnings report.

The 2 cyclical sector, and the telecom services space (+1.0%)—were the only stock groups that did not settle near their flat lines, the remaining 7 sectors ended with gainers or losses of no more than 0.3%.

The countercyclical stock sectors held up well.

The utilities sector (-0.2%) having the worst showing among the defensively-oriented groups. The rate-sensitive sector ended in-line with the market while the heavily-weighted healthcare space (+0.1%) registered a slim gainer.

There was weakness in Allergan (NYSE:AGN) 182.33, -1.88, and Merck (NYSE:MRK) 56.45, -1.16, both of which reported earnings early.

Allergan lost 1.0% despite reporting a bottom-line beat and upbeat Q-4 earnings guidance while Merck fell 2.0% after beating earnings estimates on a 4.3% Y-Y decline in revenue.

US Treasuries climbed to highs shortly after the open, and spent the day near their best levels of the session. The 10-yr yield ticked down 2 bpts to 2.26%.

Economic data

Pending Home Sales for September, which rose 0.3%, less than the 0.5% increase forecast, but ahead of last month’s unrevised decrease of 1.0%.

Tuesday

Durable Orders report for September (consensus 0.6%) will be released at 8:30a EDT, the Case-Shiller 20-City Index for August (consensus 5.5%) will cross the wire at 9:00a EDT, and at 10:00a EDT release of the October Consumer Confidence report (expected 87.2).

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.
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