Market Intelligence

Equity Market Insight from Nasdaq MID - June 26, 2017

Monday, June 26, 2017, 11:30 AM, EST

  • NASDAQ Composite -0.45% Dow +0.10% S&P 500 +0.02% Russell 2000 -0.3%
  • NASDAQ Advancers: 1016 / Decliners: 1181
  • Today’s Volume (100day avg): +8%

Equities across the globe are advancing on light volume, while Biotechs are taking their first step back in the past 6 sessions. Senator Mitch McConnell has suggested we’ll see a revised Healthcare bill the near-term, as the Republican Senators will attempt to convince the last few party members to support the plan. On the economic front, Thursday’s GDP figure will likely grab headlines ahead of the holiday weekend.

  • Durable Goods orders fell 1.1% in May, more than the 0.6% decline that was expected. Durable Goods ex-Transportation rose 0.1%, also shy of estimates, which were 0.4%. This unexpected decline in orders for business equipment may serve as a warning sign and weigh on 2Q economic growth.
  • Friday marked the completion of the Russell Reconstitution. This year’s reconstitution marked an expanding US market, with the total market cap of the Russell 3000® Index up nearly 13% since last year’s rebalance to an all-time high of $27.2 trillion. On Nasdaq, 972 million shares representing $28.9 billion worth of stock across 2,499 companies were traded – all in 0.861 seconds in the Nasdaq Closing Cross.
  • Today, thing return to normal during the final week of trading before the holiday-shortened Independence Day week. Billionaire activist investor Daniel Loeb’s Third Point LLC hedge fund has taken a $3.5 billion stake in Nestle. Shares were 3.8% higher in Europe. Yum! Brands was higher after Australian company Collins Foods Ltd. said it is buying 28 of its KFC restaurants.
  • The WSJ points out that the Nasdaq Composite has gone 158 trading days without a pullback of 5% or more. This is the longest streak since 1989, which means even the dot.com boom did not see such performance.
  • The Bank of International Settlements’ (BIS) noted that while the global economy had strengthened over the past year, it remained vulnerable to higher inflation, financial stress from maturing financial cycles, a debt overhang and a rise in protectionism.

Technical Take:

Last week, we mentioned the strong gains for the Nasdaq Biotech Index. The NBI is now higher by 12.5% in June and up 20.4% YTD, with the Relative Strength touching its highest level since March 2015 (RSI=78). Technical Traders would consider this a bearish signal, but the index was able to muscle through the sell indicator in 3/15 and gain ~7.5% over the next 4 months. The surge higher pushed the NBI to its all-time high on 7/20 (4194), while the S&P 500 traded flat during the same period.


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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 has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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