Stocks are lower this morning after blasting to record levels on
S&P 500 futures are down 0.2 percent, similar to the moves in
Europe. Asia was mixed, with Japan fractionally lower amid profit
taking following a recent rally, while India kept climbing to new
The S&P 500 rose 0.55 percent to 1985 on Thursday's
holiday-shortened session, with the market closed on Friday for
Independence Day. It was the index's third straight record close,
and the mega-cap Dow Jones Industrial Average broke 17,000 for the
first time ever.
Capital has poured into equities evidence continues to mount that
the U.S. economy is on the mend. Sentiment has recently shifted
back to more domestically focused areas such as health care,
retail, media, housing, e-commerce, and small caps. Energy, the
previous leader, has lagged while utilities have fared even worse
as the stronger U.S. economy lifts bond yields.
This week's agenda is relatively quiet but marks the official start
to second-quarter earnings season with Alcoa announcing results
tomorrow afternoon. The Federal Reserve releases minutes from its
last meeting on Wednesday afternoon, and Chinese trade numbers
later that evening could affect sentiment Thursday morning.
Attention then turns to financials with Wells Fargo scheduled to
report numbers Friday morning. Citigroup, JP Morgan, Goldman Sachs,
and other major lenders follow early next week.
market scanner has also shown strength in basic metals like copper
and iron ore. Staffing companies, railroad suppliers,
semiconductors, and retail brokerages have outperformed as well.
In company-specific news, Applied Materials rose 2 percent this
morning after being upgraded to "overweight" by JP Morgan. Archer
Daniels Midland, Expedia and Warren Resources also announced
acquisitions but are little-changed.
Commodities are edging lower as copper, gold, and silver pull back.
Oil is flat. Currencies are painting a slightly cautious picture as
the safe-haven Japanese yen strengthens. The euro is gaining
against the U.S. dollar and British pound after the Sentix investor
sentiment index unexpectedly rose.