US Stocks Finished Flat to Unchanged on High Volume

US Stocks Finished Flat to Unchanged on High Volume

US Stocks Finished Flat to Unchanged on High Volume

$DIA, $SPY, $QQQ, $VXX

US stocks came back from an early losses and finished flat to unchanged Monday.

Technology companies like Apple (AAPL) and Microsoft (MSFT) saw big losses on fears about their overseas revenue, but bank stocks continued to rise along with bond yields.

Technology stocks have been weak since last week’s election, and they fell Monday as investors wonder if Donald Trump’s policies as President will hurt their sales in China and other markets overseas.

Bank stocks built on their post-election gains as bond yields continued to rise. That opens the doors for banks to make more money from lending.

Government bond yields are now at their highest levels since January.

The market is seeing the Donald Trump policies will drive some better economic growth, thought be inflationary. But there is no growth without inflation.

Technology companies fell sharply, with familiar names taking some of the largest losses.

Apple gave up 2.72, or 2.5%, to 105.71

Facebook declined 3.94, or 3.3%, to 115.08

Microsoft slid 0.90 cents, or 1.5%, to 58.12.

Alphabet slipped 18.53, or 2.4%, to 753.22.

Bond prices fell and yields jumped as investors anticipated that Donald Trump’s spending plans would lead to higher inflation and more government borrowing.

The yield on the 10-year US T-Note climbed to 2.25% from 2.14% late Thursday. Last Monday the yield was 1.83%. That is a huge move for that benchmark rate.

Goldman Sachs rose 5.24 percent, to 2.6%, to 209.18

Bank of America rose 1.06, or 5.6%, to 20.08.

JP Morgan Chase picked up 2.82, or 3.7%, to 79.51.

Investors are focused on potential corporate and individual tax cuts, a wave of deregulation that eliminates some of the rules governing businesses like energy companies and banks, and more protectionism on trade, which could hurt sales for companies that do a lot of business overseas.

Investors are pleased at the prospect of looser regulation and bigger profits.

Donald Trump’s election may well result in big changes to the Dodd-Frank financial reform bill or to the Consumer Financial Protection Bureau.

And corporate dealmaking could increase as Trump Administration takes a looser approach to antitrust regulation. Several companies announced deals or deal offers Monday.

The USD rose against other currencies as US interest rates rose. It jumped to 108.51 Japanese Yen from 106.78 Yen. EUR fell to 1.0726 from 1.0845.

Investors are selling companies that pay big dividends like utilities and phone companies as bonds become more appealing to investors seeking income.

Verizon fell 0.51, or 1.1%, to 46.18

American Electric Power lost 1.27, or 2.1%, to 58.72.

WTI Crude Oil slipped just 0.09 to 43.32 bbl in New York. Brent Crude lost 0.32 to 44.43 bbl in London.

Gold fell 2.60 to 1,221.70. Silver lost 0.49 or 2.8%, to $16.89. Copper picked up 0.01 to 2.52 lb.

Monday, the major US stock market indexes finished at: DJIA +21.03 at 18868.69, NAS Comp -18.72 at 5218.40, S&P 500-0.25 at 2164.20

Volume: trade was heavy with 1.16-B/shares exchanged on the NYSE

  • Russell 2000 +14.3% YTD
  • DJIA +8.3% YTD
  • S&P 500 +5.9% YTD
  • NAS Comp +4.2% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.41) Bullish (0.25) Very Bullish (0.61) Bullish (0.36)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.14) Neutral (0.21) Neutral (0.23) Neutral (-0.01)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (-0.23) Bearish (-0.34) Neutral (-0.21) Neutral (-0.12)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.34) Bearish (-0.31) Bearish (-0.33) Bearish (-0.38)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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