US Stocks Finished Volatile Week, NAS Comp Outpreformed

US Stocks Finished Volatile Week, NAS Comp Outpreformed

US Stocks Finished Volatile Week, NAS Comp Outpreformed

$DIA, $SPY, $QQQ, $VXX, $AAPL

The the US stock market finished a volatile week, but was able to settle above last Friday’s marks.

The NAS Comp outperformed, +2.3%, the S&P 500 + 0.5% after testing its 100-Day MA at 2122.5 several times.

Fears of a September Fed rate hike were put down out on a batch of disappointing economic data.

A disappointing August Retail Sales report (-0.3%; consensus -0.1%) was a Key contribution.

US Treasuries sold off.

Weakness in the benchmark 10-yr T-Note drove its yield to a test at 1.75% before ending the week at 1.69% (+1 bp). The retreat in US Treasuries suggest some inflation up ahead.

CPI (+0.2% consensus +0.1%) and Core CPI (+0.3% consensus +0.2%) came in above consensus

US consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32.5 years, pointing to a steady build-up of inflation.

The CME fed funds futures market, tells us the implied likelihood of a September hike declined to 15.0% from last week’s 24.0% and the implied odds of a rate hike in December moved down to  55.5% from 58.4% last week.

The technology sector finished +3.0%, as it outperformed on the week, that thanks to an 11.4% rise in the shares of Apple (NASDAQ:AAPL). The top-weighted stock rallied on reports of strong iPhone 7 sales, ending the week near levels not seen since December 2015.

Friday, the US major stock market indexes finished at: DJIA -88.68 at 18123.80, NAS Comp -5.12 at 5244.57, S&P 500 -8.10 at 2139.16

Volume: Trade was heavy+ with over 2-B/shares exchanged on the NYSE.

  • Russell 2000: +7.8% YTD
  • S&P 500: +4.7% YTD
  • NAS Comp: +4.7% YTD
  • DJIA: +4.0% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (-0.15) Bearish (-0.29) Bearish (-0.44) Bullish (0.29)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (-0.12) Bearish (-0.29) Neutral (-0.21) Neutral (0.14)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.21) Neutral (0.18) Neutral (0.19) Bullish (0.25)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.21) Bullish (0.29) Bearish (-0.30) Very Bearish (-0.62)

Have a terrific week.

 

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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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