U.S. investors returned from the Labor Day holiday to a generally quiet session. The S&P 500 finished down 0.05% while the NASDAQ rallied 0.39%. The Institute for Supply Management’s index of factory activity, which rose to 59, the highest since March 2011, from July’s 57.1 – was generally a non event. Construction spending was announced as increasing 1.8% in July.
All systems remain go until we see something dramatic change in the index charts. We are not going to over analyze something that right now is simple.
This is a perfect bull market day for the NYSE McClellan Oscillator as you get a decent pullback while the S&P 500 itself barely falls.
Tesla Motors (TSLA) continued to surge after breaking out to all time highs late last week. Shares were upgraded to buy from hold at Stifel and set a price target of $400. The analyst says Tesla has a sustainable high-end niche and demand is a late-decade problem at the earliest.
Twitter (TWTR) also continued its recent move.
Home Depot (HD) fell after CNBC reported that hackers may have stolen credit card data from the company. To say it was a bit overbought would be an understatement.
Chinese search giant Baidu.com (BIDU) finally woke up today. This stock had done very well during the corrective phase of the market but had not participated in the rally which would be a frustrating situation for those who bought it and assumed it was going to be one of the new leaders during the next leg up in the market.
GoPro (GPRO) continues this recent run from the middle of last week – it is now very extended but in the clutches of momentum traders.