Equities are falling slightly today after pausing at record
S&P 500 futures are down less than 0.2 percent, tracking
similar moves in Europe. Asian markets were mixed in the overnight
session, with Japan's Nikkei up 1 percent and Hong Kong's Hang Seng
down more than 1 percent. Economically sensitive commodities such
as oil and copper are gaining as the U.S. dollar weakens.
The S&P 500 traded in a narrow 5-point range yesterday,
consolidating above 1700 as investors digested several positive
economic reports from last week. It also had the lightest volume
since the half-day session on July 3, evidence that the summer
slowdown is under way.
Today has no important economic reports, but companies including
Archer Daniels Midland, CVS Caremark, and Cognizant Technology will
report quarterly results before the opening bell. Walt Disney, CF
Industries, Computer Sciences, and First Solar follow in the
There has been broad strength across the market, with no single
sector dominating performance. The best performers in the last
month include Chinese Internet companies, home health-care
providers, real-estate services, telecom suppliers, and staffing
agencies. Our proprietary
tool also shows groups including loan servicers and snowmobile
makers starting to rally again after pausing at record highs. In
addition, we have also seen producers of rare-earth materials and
iron ore attempting to rebound from years of underperformance.
Dollar weakness is the main theme today in foreign-exchange and
commodity markets. Oil rose about one-third of a percent, while
copper is up almost a full percentage point. Gold and silver,
however, are falling again, while agricultural products are mixed.
The euro is inching higher as well, and the Australian dollar is
trying to rebound from its lowest price in almost three years. The
Japanese yen is posting very small gains across the board.
In company-specific news, American Eagle Outfitters is down 16
percent after cutting guidance on weak sales. Software maker
Interactive Intelligence rose 11 percent after beating expectations
on the top and bottom lines. Solar-energy stock GT Advanced
Technologies advanced 8 percent on strong earnings, and Washington
Post is up 5 percent on news it will sell its flagship newspaper to
Amazon.com founder Jeff Bezos.
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