2:20 pm ET: Although the SPX managed to barely close above the critical 1375 level yesterday, it wasn't able to hang onto it. We've been talking about how there seems to be a bull/bear bifurcation in the market and while the bulls seemed to be winning yesterday, the bears are in control today. Market internals are indicating continued weakness, but with the expiration of July options, we could see a reversal going into the close.
Utility stocks continue to shine as 13 issues are making new highs today. It's no surprise that the utility etf (NYSEARCA:XLU), a basket of utes, is following suit. This fund pays a decent 3.7% dividend which reflects the dividend yield of the individual issues (most are in the 3-4% range).
Turning to foreign markets, the Eurozone debt woes continue to drag on stocks. Two of the regions largest companies that trade on US exchanges--Telecom Italia (NYSE:TI) and Banco Santander (NYSE:SAN)--have sunk to new lows. Reflecting this movement are the Italy (NYSEARCA:EWI) and Spain (NYSEARCA:EWP) etfs which are also at new lows. Of course, the fact that the euro (NYSEARCA:FXE) continues to slide isn't helping matters.
I've been wanting to include a new Stock of the Day pick but since the market has been so directionless, I've been loathe to do so for the simple reason that 70% of all stocks tend to trend with the market (although I will make a recommendation if I think the fundamentals of the stock are compelling enough to buck any prevailing trend). Have a good weekend!