Monday was a volatile session but in the end indexes finished nearly unchanged as the S&P 500 added 0.08% and the NASDAQ 0.24%. There is still some uncertainty over the market due to the issues in Iraq but the market is holding in there quite well as both indexes sit near their 10 day moving averages after being overbought a week ago. We do have a Federal Reserve meeting this week but no surprises should be expected – another $10B reduction in quantitative easing will be delivered. There were some secondary economic indicators released for the day and most trended positive:
The New York Federal Reserve’s Empire State index of business conditions in June rising to its best reading since June 2010; industrial production for May up 0.6 percent and a gauge of builder sentiment jumping in June.
Both indexes are fine – consolidating after a big move up in a span of a few weeks, especially the NASDAQ.
The energy sector was a winner today – not surprising as we pointed out the ramp up in oil Friday. Here is the sector ETF.
Telsa Motors (TSLA) shot up on a news report about a possible collaboration with competitors Nissan Motor and BMW on expanding the network of charging stations for electric cars.
We highlighted the very nice chart of Zillow (Z) last week – and it made a very explosive move today.
On the merger front, medical device maker Medtronic (MDT) agreed to buy Dublin-based Covidien (COV) for $42.9 billion and shift its executive headquarters to Ireland in the latest move by U.S. companies to take advantage of lower tax rates abroad. Covidien’s stock shot up 20.5 percent to $86.75; it was the S&P 500′s biggest percentage gainer.