Stocks are down again today, continuing Friday's selloff as
investors continue to dump long-term leaders.
S&P futures are off almost 0.5 percent, while most European
markets are lower by about 1 percent. Tokyo fell almost 2 percent
in the overnight session and Hong Kong shed more than half 0.5
percent. Mainland Chinese bourses were closed.
The S&P 500 touched a new all-time high of 1897 shortly after
Friday's bell, but then reversed and ended the session with its
sharpest decline in two months. The Nasdaq 100 and Russell 2000
indexes fared even worse. Technicians will now likely eye 1850 as a
key level for the S&P 500 to hold.
Sellers have been most active in biotechnology, e-commerce, and
media stocks, which had outperformed the broader market for more
than a year. Brokerages have also struggled. At the same time,
capital has been pouring into energy, industrial metals, utilities,
and emerging markets, according to our
International benchmarks have climbed at the same time that U.S.
indexes have struggled, and economic data has remained strong. That
suggests that a major shift in sentiment is underway as investors
return to international/global-growth stocks after a hiatus of more
than two years.
This week's calendar is relatively quiet as corporate earnings
start flowing. Alcoa is the first big release tomorrow afternoon.
Wednesday brings minutes from the Federal Reserve's last meeting.
Thursday focuses on retail, with monthly same-store sales, plus
results from Family Dollar. Big financials are in focus Friday
morning as JP Morgan and Wells Fargo report.
Commodities are also under pressure today as oil declines almost 1
percent and metals post small losses. Agricultural products are
Foreign-exchange trading is more bullish, with European currencies
up across the board. The U.S. dollar is down slightly against the
Japanese yen. The Australian and Canadian dollars, which led the
recent comeback in emerging markets, are also off fractionally.
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