Stocks rebounded Thursday from a 5 day selloff but it was not exactly a roaring rebound. In fact if not for a big rally in the last 10 minutes stocks would have barely finished in the green. The S&P 500 gained 0.35% and the NASDAQ 0.70%. It was a very volatile day as we continue to see some churning under the surface. Some of the comments from politicians regarding the federal budget impasse hurt the market today but the general idea is these politicians do this every time and eventually after all the posturing will get to some form of a deal.
In economic news weekly jobless claims hit a 6 year low and the government left unchanged its 3rd estimate of 2nd quarter GDP. Pending home sales slipped 1.6 percent in August, declining for the third straight month.
Nothing new on the indexes, the NASDAQ continues to outperform the S&P 500 with the latter still below its 10 day moving average and below early August highs. We have a bit of a bear flag on the S&P 500 now which bulls would like to see change.
Ebay surged today as it announced an acquisition to bolster its Paypal unit.
Ebay Inc will buy payment gateway Braintree for about $800 million to strengthen its PayPal unit's presence on mobile devices and take out a rapidly growing rival.PayPal, the dominant online provider of payment services, has been trying to fend off a clutch of fast-rising competitors such as Braintree, Intuit Inc's GoPayment and Twitter founder Jack Dorsey's Square Inc. The deal gives Ebay access to Braintree's Venmo, an app that lets consumers make payments on smartphones and tablets, an area in which EBay wants to be more involved. PayPal, with its 120 million users, has dominated online payment services for about a decade. But its growth has moderated in recent years, partly as a result of increased competition on mobile devices from smaller but nimbler rivals.
Rental car company Hertz (HTZ) meanwhile, had a very rough session on massive volume as earnings guidance came in light.
LinkedIn (LNKD) - which had been the most disappointing of the "4 horsemen" of this rally over the past three weeks, had a nice session - finally acting more like the Facebooks, Teslas, and Netflixes.
Chinese search engine giant Baidu (BIDU) continues to act well, throwing its hat in the ring as the "5th horsemen".