Indexes fought off weakness mid day as the bulls remain in control; the S&P 500 added 0.18% while the NASDAQ fell 0.13%; both were well off their respective lows. There was some negative data in terms of consumer spending but like a lot of bad economic data the past 5 years the market really is not in a mood to care. There was also a positive revision that offset it to a degree. The Commerce Department said household purchases fell 0.1 percent last month in the first decline in a year, following a revised 1 percent rise the prior month, the strongest since 2009. Incomes increased 0.3 percent, as expected. Also, the Thomson Reuters/University of Michigan’s consumer sentiment index fell to 81.9 in May from 84.1 in April, but was up slightly from earlier in the month.
Technically the S&P 500 is now almost at a key resistance point – a few points away. The NASDAQ is in far better shape than 2 weeks ago and now you can use an easy number like 4200 as a floor. As long as that holds things should be ok.
10 year Treasury yields fought back some today and sit right at that lower floor. Thus far the market has not cared and now some are saying the Federal Reserve has so distorted the bond market you cannot use it as an indicator like it has been used for a century. I guess we will find out a year from now.
We’ll look at some names we don’t normally discuss today.
While we’ve seen a nice move back into growth stocks the past week and a half, the safety stocks are still doing ok; see Colgate -Palmolive (CL) – very nice move on volume past few sessions.
In the consumer discretionary space, hotel giant Marriott (MAR) had a major move here.
Boring old stodgy Intel (INTC)? Well not regarding the stock of late.
Boring old Walgreen (WAG)? Again – quite a move for this type of slow growth company.
Have a good weekend and we’ll see you back here next week.