- Domestic markets swung higher after a slight pullback earlier in the week. S&P 500 Index +0.8%, Dow +0.8%, Nasdaq +1.3%.
- Telecommunications, consumer staples, technology outperformed. Utilities lagged; energy also underperformed on continued oil weakness.
- 10-year Treasury lower; yield +4 basis points (+0.04%) to 2.37%.
- NYSE breadth positive (3:1); exchange volume slightly below 30-day avg.
- Commodities- Crude -0.3% to $55.18/bbl., gold flat at $1278/oz., industrial metals mostly higher.
- Economic data- U.S. manufacturing, industrial production soundly beat estimates. Jobless claims came in above expectations (249K vs. 236K).
Overnight & This Morning
- U.S. stocks opened near flat as markets digested House passing its tax bill.
- European equities retracing some of yesterday’s gains. Euro STOXX 600 -0.5%, DAX -0.3%, CAC 40 -0.5%.
- Asian markets mixed, gains attributed mostly to rise in U.S., European markets yesterday. Nikkei +0.2%, Hang Seng +0.6%, Shanghai Composite -0.5%.
- 10-year Treasury lower; yield +1 basis point (0.01%) to 2.36%.
- Commodities- Crude turning around week’s early losses (+1.37% to $56.09/bbl.), gold remains near flat at $1282/oz., industrial metals mostly higher.
- Economic data- Housing starts and permits posted unexpectedly strong gains, +13.7% to 1.29 million vs. 1.19 million expected.
- Bounce back. The S&P 500 bounced back 0.82% yesterday, its best day in nine weeks. This of course came on the heels of its worst day in 10 weeks. Leading the way was telecommunications, which has been extremely weak recently. High-yield corporates had their best day since March, sparking much of the risk-on appetite. The weakness in high-yield bonds has been noted as a reason for potential equity weakness–be sure to read the LPL Research blog for our take on why this might not be the worry that so many claim.
- Talking Turkey. Today on the LPL Research blog we will talk turkey and equities. We hope you like it.
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