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S&P 500 (SPY) and Nasdaq 100 (QQQ) futures -0.5% with DJIA futures -0.4% as equity markets look to continue - at least at today's open - their thus-far tiny August funk.
China and Hong Kong each roared higher by more than 2% overnight and Japan slipped a little with weakish Q2 GDP data the apparent excuse for selling, even though it's nearly 3-month old information. Europe is off moderately.
Treasury prices are off a hair with the 10-year yield up 1 basis point to 2.59%.
Treasury prices (TLT, TBT) erase early losses as jobless claims rise and durable goods ex-transport misses expectations. Nasdaq 100 (QQQ) futures go from red to green, now +0.1% (Facebook is up 23% and accounts for 1.36% of the index). S&P (SPY) and DJIA (DIA) remain off 0.4%.
Treasury prices (TLT -1.6%) add to losses following the 5-year note auction and a pretty middling bid-to-cover ratio. The 10-year yield is up 11 bps to 2.61% in its worst session since the June employment report, and it's starting to take effect on the major stock market averages. The Dow (DIA -0.5%) and the S&P 500 (SPY -0.5%). The Nasdaq 100 (QQQ +0.2%) clings on to a small gain, courtesy of Apple.
SPDR Dow Jones Industrial Average ETF (DIA)announces monthly distribution of $0.2061. 30-day SEC yield of 2.19% (as of 07/18/2013). For shareholders of record July 23. Payable Aug. 12. Ex-div date July 19.
The broadest of stock market index's - the Wilshire 5000 - has broken above long-term resistance, notes Kimble Chartling Solutions. Combined with an Advance/Decline line near an all-time high, it's two technical positives for the market (VTI, SPY, DIA). Scott Minerd yesterday suggested the A/D line's June swoon as reason for serious caution on the market for the rest of the summer.
The stock market's (VTI, SPY, DIA) in for a rough summer, says Guggenheim's Scott Minerd as his favorite indicator - the advance/decline line - dropped more than the indices during June's decline, suggesting something bigger coming soon. The action is very similar to what we saw in 2007, he says. The deteriorating technical picture combined with worrying signs for the global economy makes this a rally to sell, not buy.
The financial sector (XLF +1.2%) is leading a moderate rally in the S&P 500 (SPY +0.7%) and DJIA (DIA +0.8%) as Intel, Verizon, and Qualcomm hold back the Nasdaq (QQQ +0.1%). Within financials, it's the banks (KBE +1.8%) doing the best. Morgan Stanley is ahead 5% as it surprises with a buyback announcement, and Bank of America gains another 3% following yesterday's earnings.
Stock index futures (SPY, QQQ, DIA) are little-changed as quarterly earnings report really begin to pour in. Bernanke heads up to Capital Hill for a 2nd day of Humphrey Hawkins testimony - this time in front of a Senate committee. The 10-year Treasury yield is off 2 bps to 2.47%.
"We still haven't had the capitulation phase, we still have negative attitudes," says Laszlo Birinyi, arguing the market (SPY, QQQ, DIA) is headed higher. There's no better indicator than money flows, he says, and it's a lot more than the Fed putting money into the market. HIs year-end target S&P target of 1,700 is just a few points away, so what then? "This is a long trip and people want to know when are we going to get to L.A., and I'm saying let's get to Chicago first."
Stock index futures (SPY, QQQ, DIA) are little-changed ahead of Bernanke's Humphrey Hawkins testimony set to begin at 10 ET (his prepared remarks will be released at 8:30). Europe's moderately lower and Asia was mixed overnight. The 10-year Treasury yield is up 1 bp at 2.55%.