Markets Wrap with Tech Lifting NAS to Record


The S&P 500 declined 0.1% Tuesday in a mixed session. The retail industry was under pressure following disappointing quarterly results and guidance from Home Depot (HD 225.86, -12.99, -5.4%) and Kohl’s (KSS 47.02, -11.38, -19.5%)

The NAS Comp climbed to a fresh record on the back of gains in mega cap tech companies even as the DJIA sank following disappointing reports from retailers.

Gains in Facebook, Broadcom and Tesla lifted the NAS while Home Depot was the biggest drag on the DJIA after the company cut its annual forecast for the 2nd time this year.

Investors also mulled the implications of a report that U.S. and Chinese negotiators may link the size of tariff rollbacks to terms set during talks in May. Benchmark 10-year Treasury yields dipped below 1.8%, while Crude Oil tumbled for a 2nd day running.

USD edged higher Vs its major peers after President Trump said he “protested” US interest rates that he considers too high in a meeting with Fed Chairman Powell at the White House. The Fed said Mr. Powell’s remarks were “consistent” with his recent public comments.

Investors remain sensitive to any signs of whether U.S. consumers can continue supporting economic growth and are looking for developments on trade after months of closely watched negotiations.

A Key challenge for stocks across developed markets lies in the MSCI World Index’s 21% advance this year, which has propelled the benchmark to its highest estimated P/E (price-earnings ratio) since Y 2017.

People are concluding that the economy has some strength, that it’s strong enough to support rising stock prices. While consumer spending is falling, it’s not falling off a cliff. Overall most of the news has been good, investors are feeling more confident.

Tuesday the major US stock market indexes finished at: DJIA -102.20 at 27933.93, NAS Comp +20.72 at 8570.66, S&P 500 -1.85 at 3120.18

Volume: Trade on the NYSE came in at 842-M/shares exchanged

  • NAS Comp +29.2% YTD
  • S&P 500 +24.5% YTD
  • DJIA +19.8% YTD
  • Russell 2000 +18.5% YTD

HeffX-LTN’s overall technical analysis for the major US stock market indexes is Bullish to Very Bullish

Looking ahead, the FOMC Minutes from the 30-31 October meeting and the weekly MBA Mortgage Applications Index will be released Wednesday.

Stay tuned…