The market couldn’t get any traction yesterday. Although buyers emerged into the close, they focused on growth stocks; hence, the only two winning sectors were Communication Services and Technology.
Energy continues to come down as a surprised build in inventories sent West Texas Intermediate (WTI) under $70.00.
S&P 500 Index | -0.46% | |
Communication Services XLC | +0.28% | |
Consumer Discretionary XLY | -0.97% | |
Consumer Staples XLP | -1.30% | |
Energy XLE | -2.71% | |
Financials XLF | -0.84% | |
Health Care XLV | -0.42% | |
Industrials XLI | -1.36% | |
Materials XLB | -0.95% | |
Real Estate XLRE | -0.32% | |
Technology XLK | +0.20% | |
Utilities XLU | -0.15% |
Earnings Scoreboard | Revenue | Earnings |
Beat | 87% | 87% |
Blended return | 22.9% | 91.0% |
Blended estimate Jul 1st | 18.5% | 65.4% |
Blended estimate Apr 1st | 15.2% | 54.0% |
Blended estimate Jan 1st | 12.7% | 45.7% |
Jobless Claims
Initial jobless claims edged lower to 385,000 in line with consensus, but it is still far enough from pre-pandemic levels to cause concern.
To see the chart, click here.
Continuing claims came in with a two-handle, as the number slipped to 2.93 million.
To see the chart, click here.
I’m not sure what this says about tomorrow’s jobs report other than I would think the number would be much lower to reflect an environment where one million jobs were created.
The street continues to look for a monster number, and maybe we see a pop in service, but I have serious concerns about goods producing jobs.
Portfolio Approach
There were no weighting changes to our Hotline Model Portfolio.
Today’s Session
Reactions to good and even great earnings continue to be a head scratcher. On one hand, its creating opportunities, but it speaks to a kind of underlying nervousness that could be exploited.
Note: Goldman Sachs raised its full -year S&P 500 target to 4,700 from 4,300 matching Oppenheimer, which raised its target earlier in the week.
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