Indexes in the U.S. were down modestly – much needed after a 3 week run with little rest. The S&P 500 fell 0.35% and the NASDAQ 0.14%. Some are blaming the surprise loss of Cantor to a Tea Party candidate but rather than pointing out any specific reason, it’s just a market that needs a bit of a rest short term and any excuse would do. Longer term – Sam Stovall, equity strategist at S&P Capital IQ, pointed out today that we’ve gone 32 months without a decline of 10 percent or more, and the average is 18 months since World War II. So we’re definitely in a type of zone rarely seen by the market the past 3 years.
Here are the longer term index charts for the S&P 500 and NASDAQ. I’ve added a blue dotted line in the S&P 500 connecting highs of the past half year so we’ll see if this becomes a useful support area or not. The NASDAQ there is no real clear pattern as of this time as it broke a very clear pattern it had been in for 18 months and fell much harder than the S&P 500 the past few months.
Among big cap stocks, Boeing and Bank of America had rough days
Boeing (BA) took a hit on a downgrade from RBC Capital.
Bank of America (BAC) fell as the bank has reached an impasse in negotiating a multibillion-dollar settlement with the U.S. Department of Justice related to the bank’s mortgage investments.
We mentioned yesterday how some Chinese internet stocks were starting to see some action – today we saw Youku (YOKU) continue that trend. Decent volume – nice reversal, a lot like a lot of the momentum stocks saw about 3 weeks ago.
Zillow (Z) had a tremendous run in May, needed some rest to consolidate those gains and let the 10/20 day moving averages catch up – so all that happened and we saw a nice move today.
Trulia (TRLA) is a very similar real estate website to Zillow and has moved into a decent setup as well, although Zillow is stronger long term.