Friday, March 23, 2018, 11:15 AM, EST
- NASDAQ Composite -0.11% Dow +0.35% S&P 500 +0.11% Russell 2000 +0.06%
- NASDAQ Advancers: 1249 Decliners: 585
- Today’s Volume (vs. yesterday) +4.05%
Markets are trading mixed to flat this morning following a volatile trading week that saw both large and small cap names pull back over 3%. Currently all 11 S&P 500 sectors are in the green with Energy (+1.55%) and Industrials (+0.61%) the outperformers. Gold is up 1.5%, Oil is up 1.1%, the dollar is lower and the yield on the 10-yr is at 2.835%.
- Durable-goods orders jumped 3.1% in February much higher than economist projections of a 1.6% increase. This reversed a significant drop at the start of the year while posting the largest gain since last summer. Business investment also rebounded in a good sign for the U.S. economy. Ex-transports rose an impressive 1.2% vs expectations of a 0.5% increase. Transportation often exaggerate the ups and downs in durable-goods orders because of concentrated demand. Core capital goods shipments, which feed into GDP, increased 1.4%, following January's unrevised +0.1%.
- The anticipated pricing of Dropbox (DBX) on Nasdaq took place today with the stock pricing 36 million shares at $21 above the anticipated range of $18-20. Giving the company first day market cap of over $9.2 billion Congratulations!
- Controversial news hitting M&A land as Fast Company reports that Target (TGT) and Kroger (KR) mull a merger. CNBC rebuts this saying there in no truth to the merger report according to their sources. Including this deal, likely valued at north of $21 billion, total M&A activity YTD (announced, proposed or completed) totals $1.4 trillion globally, down 15% from 2017, with nearly $750 billion in North America alone.
Equity indices are mixed today after futures recovered from being in the red in the overnight session. Currently the Nasdaq Composite and Russell 2000 are oscillating around breakeven while the large cap S&P and Dow Jones are in the green. Yesterday the blue-chip Dow Jones led declines with a loss of (2.9%) and there are plenty of potential explanations as to why: rising overnight lending costs (Libor-OIS spread), Fed QT, tariffs, spending bill, sunrise/sunset... whatever! Bottom line is that clearly equities are still dealing with the fallout from their initial 11-12.5% decline in early February. Back then the Dow Jones also saw the steepest decline of the major indices by losing 12.3% in less than two weeks’ time. It bottomed on February 9th at 23,360 which notably was nearly identical with the 150-day sma. Yesterday’s steep decline closed at the bottom of the session’s range, which once again equaled the 150-day sma, now 23,942. The concerning difference this time is that the Dow closed on the 150-day moving average, whereas last month it marked an intraday low before reversing and closing more than 3.5% higher. The risk now is a breakdown below the 150-day sma which should carry it towards last month’s low, which now is nearly identical to the 200-day sma. Today’s close should be telling, particularly ahead of the weekend and a spending bill which has not yet been signed by the President.
Nasdaq's Market Intelligence Desk (MID) Team includes:
Michael Sokoll, CFA is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.
Jeffrey LaRocque is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.
Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.
Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.
Annie O'Callaghan is Director on the Market Intelligence Desk (MID) at Nasdaq. Annie has worked for NASDAQ in a variety of roles including support of Nasdaq C-level management in client retention and customer service. Annie also served as a Sales Director in Nasdaq’s Transactions Services business. Prior to joining Nasdaq, Annie worked at AX Trading, managing accounts for its Alternative Trading System and served on Credit Suisse's trading desk as an Electronic & Algorithmic Sales Trading Analyst.
Brian Joyce, CMT is a Director on the Market Intelligence Desk (MID) at Nasdaq. Before joining Nasdaq Brian spent 16 years as an institutional trader executing equity and options orders for both the buy side and sell side. He also provided trading ideas and wrote technical analysis commentary for an institutional research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Transportation companies, among others, understand the trading in their stock. Brian is a Chartered Market Technician (CMT).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.