US Stocks Finished Flat to Unchanged Wednesday

US Stocks Finished Flat to Unchanged Wednesday

US Stocks Finished Flat to Unchanged Wednesday

$DIA, $SPY, $QQQ, $VXX

The major US averages finished Wednesday’s session flat to unchanged, as the S&P 500 (+0.1%) and the NAS Comp (+0.2%) closed with modest gains while the DJIA (-0.2%) under-performed.

Black Gold finished 0.3% higher at 52.36 bbl after seeing solid losses during the overnight session and into the morning. The Energy Information Administration (EIA) data showed a huge 13.8-M bbl build in Crude Oil inventories, which confirmed Tuesday’s Bearish reading from the API.

WTI Crude Oil climbed despite the inventory readings, likely due to some short positions being squeezed.

Stan Druckenmiller, the billionaire investor with one of the best long-term track records in money management bought Gold in late December and January, reversing the sale he made after the US Presidential election.

“I wanted to own some currency and no country wants its currency to strengthen, Gold was down a lot, so I bought it,” he said.

Precious metals:

  • April Gold ended today’s session up 3.50 (+0.3%) at 1239.50 oz
  • March Silver closed today’s session 0.04 lower (-0.2%) to 17.71 oz

On the countercyclical side, a 8.6% decline in Gilead Sciences held the healthcare space (-0.1%) below its flat line. Gilead reported better than expected results, but negative guidance for Y 2017 overshadowed the company’s earnings.

A positive earnings report and above-consensus guidance from Allergan helped alleviate some of healthcare’s loss, but was not enough to prevent the space from being the only defensive sector to close in the Red.

Lightly-weighted real estate (+0.9%) and utilities (+0.9%) closed at the Top of the day’s board, while financials (-0.8%) finished at the Bottom. The financial space experienced broad pressure from its components as investors engaged in some profit taking in light of the space’s huge Q-4 advance and the stock market’s recent stall.

The financial space also faced some headwinds in the US Treasury market as the yield curve ended the day slightly flatter.

US Treasuries had a fairly volatile session, jumping to session highs amid a modest decrease in rate hike expectations. The fed funds futures market is  pointing to June as the most likely window for the next rate hike, but the implied likelihood of a June hike declined to 58.4% from 64.7%. May not see a hike there, perhaps in September, the fed is being very cautious around the Trump Administration.

Wednesday, the US major stock market indexes finished at: DJIA -35.95 at 20054.34, NAS Comp  +8.24 at 5682.46, S&P 500 +1.59 at 2294.67

Volume: trade was heavy on the NYSE with 1.01-B/shares exchanged.

  • NAS Comp +5.6% YTD
  • S&P 500 +2.5% YTD
  • DJIA +1.5% YTD
  • Russell 2000 +0.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (0.19) Neutral (-0.17) Bullish (0.32) Bullish (0.40)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.23) Neutral (0.19) Bullish (0.35) Neutral (0.15
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.55) Very Bullish (0.62) Bullish (0.48) Very Bullish (0.54)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.39) Bearish (-0.49) Very Bearish (-0.70) Neutral (0.01)

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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