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Tracking Tuesday's Turbulent Trading

Today 5d 1m 3m 1y 5y 10y

 
SPDR S&P 500 ETF TRUST 114.895  0.625
Today 5d 1m 3m 1y 5y 10y
 
ETF or ETN Today 3 Mths 1 Yr YTD
Energy (XLE) 1.0% 7.4% 2.2% -2.5%
Healthcare (XLV) 0.9% 6.0% 6.5% -1.2%
Consumer Discretionary (XLY) 0.9% 10.5% 22.9% 13.5%
Consumer Staples (XLP) 0.9% 7.7% 11.2% 6.2%
Industrial (XLI) 0.7% 9.5% 17.9% 13.2%
Financial Services (XLF) 0.4% 0% -3.8% 0.8%
Utilities (XLU) 0.3% 9.0% 7.4% 2.0%
Technology (XLK) 0.3% 7.8% 10.9% 1.1%
Basic Materials (XLB) 0% 11.6% 6.7% 0.6%



  • Overnight in Asia hours…markets were generally lower on follow through to US weakness in Monday’s trading session. 
  • Talk in China about new restrictive measures in the property arena sent real estate developer shares lower. Australia mining companies also lower. 
  • Pre-market opening in NY: Walgreen earnings beat by 5 cents.
  • Asia Development Bank increased growth forecasts to 8.2% from 7.5% for 2010 saying developing Asia is gaining momentum.
  • Quiet pre-open ahead of Confidence and Case-Shiller data.
  • Case-Shiller….showed 3.2% YY increase in July, vs 4.2% YY increase in June…..good that it was positive, bad that it’s at a slower rate. Also, the MM figures were also moderating. Since Fed tax incentives ended, demand is softening.
  • Markets opened lower…Dow down 36 in first 15 minutes of trading.
  • Consumer confidence fell in September to lowest level since February.…48.5. That sent markets down further (Dow down 82).
  • By 11am markets recovered to flat as the Fed was in buying TIPS as part of its reinvestment of mortgage security runoff. Markets are cautious to get too negative in case the Fed turns ‘reinvestment’ into new QE2.
  • USTsy 5yr auction at record low yield 1.26%, bid/cover 2.96x.
  • Markets maintained their positive stance midday. 
  • In the corporate news front, Barnes & Noble shareholders gave the nod to company founder, rejecting the ouster attempt by Ron Burkle….Monsanto’s stock was uprooted as its SmartStax corn-seed showed less effective results than had been expected…. BP returned to the capital markets with bond offerings in multiple maturities, first time since the Gulf disaster….and Walgreen’s earnings surprise sent the stock up over 11%.
  • Gold finished the day at record $1,308
  • Markets remained in positive territory in early afternoon hours. Headlines focusing on weak data increasing the likelihood that the Fed will have to ease further (with “unconventional” methods) kept markets buoyed.
  • As we approached the final hour, the market started to give back some of the gains, coming off of the highs of the day…entered the final hour up 17 points on the Dow.
  • With only ½ hour to go until the Closing Bell, Dow is up 27 points and gaining momentum to the upside on the hope for more Fed stimulus to counter weak data. Financials were underperforming throughout most of the day as Meredith Whitney continues to forecast rough times ahead. Consumer services, energy and healthcare were all leader sectors on the day.
  • At the Closing Bell, the Dow was off the highs but still well into positive territory, closing up 46 points.
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Disclosure: Long SPX, EEM, XLU and stocks/etf's in SPX, DOW, Europe, Asia and Latin America