Wall Street Marks Fresh Record Highs and Fades on Profit Taking

Wall Street Marks Fresh Record Highs and Fades on Profit Taking

$DIA, $SPY, $QQQ, $RUTX, $VXX

Stock market closes flat to little changed after setting record highs

The DJIA, S&P 500 and NAS Comp each touched intra-day record highs before losing ground in afternoon trade. The DJIA ended the session with a modest gain.

From a sector standpoint, the S&P 500 information technology (-0.6%) and real estate (-0.5%) sectors were Tuesday’s laggards, while the health care (+0.5%) and utilities (+0.3%) sectors finished with modest gains. Apple (AAPL) 312.68, -4.28, -1.4%) weighed on the tech sector after shares were downgraded to Underweight from Neutral at Atlantic Equities.

Trade news: China has pledged to buy nearly an additional $80-B of manufactured goods from the United States over the next 2 years, and over $50-B more in energy supplies. The selling was modest, as there was never any indication the US would remove tariffs with the signing of a Phase 1 deal. The report may have been a good excuse to sell a market that is overbought on a short-term basis, but buyers are strong in here.

With the S&P 500 at record marks, equivalent to around 18X expected earnings.

Kicking off Q-4 earnings season, JPMorgan Chase & Co rose 1.2% after reporting a better-than-expected profit on strength in its trading and underwriting businesses.

Wells Fargo & Co dove 5.4% after reporting a fall in profit as it set aside $1.5-B for legal expenses. Citigroup Inc rose 1.6% as it topped Wall Street profit estimates.

Tuesday, the major US stock market indexes finished at: DJIA +32.62 at 28939.58, NAS Comp -22.60 at 9251.35, S&P 500 -4.98 at 3283.15

Volume: Trade on the NYSE came in at 916-M/shares exchanged

  • NAS Comp +3.1% YTD
  • S&P 500 +1.6% YTD
  • DJIA +1.4% YTD
  • Russell 2000 +0.4% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish in here.

Looking ahead, investors will receive the Producer Price Index for December, the Empire State Manufacturing Survey for January, the Fed’s Beige Book, and the weekly MBA Mortgage Applications Index Wednesday.

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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