Market Intelligence

Equity Market Insight from Nasdaq MID - June 27, 2017

Tuesday, June 27, 2017, 10:45 AM, EST

  • NASDAQ Composite -0.19% Dow +0.07% S&P 500 +0.04% Russell 2000 -0.04%
  • NASDAQ Advancers: 1021 Decliners: 1067
  • Today’s Volume (100day avg): -1.7%

U.S. equities are mixed to flat this Tuesday morning as summer trading volumes start to take hold in the U.S. The S&P 500 is seeing mixed sectorized results this morning as 6 of the 11 S&P 500 sectors are in the red with Telco down 1.13%, Utilities down 0.41% and Tech down 0.29%. Top performing sectors include Energy up 0.64%, Financials up 0.55% and REITS up 0.36%

  • Not a believer in the Trump Trade? The IMF reduced the US growth for 2017 and 2018, noting "significant policy uncertainties." 2017 GDP growth is now expected to be 2.1% (was 2.3%) and 2018 GDP growth is also projected at 2.1% (vs. 2.5%). Long term growth is expected to converge to the underlying potential growth rate of 1.8%. The projections do not include the impact of tax reform or spending reductions proposed in the administration's budget. Somebody needs to do something because 1.8% is not going to get it done.
  • We think this has been discussed before... According to Bloomberg two Senators are discussing the break-up of Fannie Mae and Freddie Mac to create more competition in the secondary mortgage market. The size of the two has been a long standing concern. Among the issues would be how to address the guarantees both companies issue on mortgage backed securities.
  • Nasdaq welcomestwo IPOs this morning with Avenue Therapeutics pricing at $6.00 under the ticker ATXI and Esquire Financial Holdings, Inc pricing at $14.00 under the ticker ESQ. Congratulations and welcome to the family!

Technical Take:

Since topping out on 6/19, the S&P 500 has moved in a sideways pattern, unable to gain traction from the strong gains from Healthcare stocks. Also during that period the bearish bets have started pile on with Put buying on the uptick in the SPDR S&P 500 ETF. The Put/Call 10 Day Average Ratio (2.38) is now at its highest level since Sept-Oct 2014. The Bears briefly benefited from a short-term pullback in the first half of October 2014, as the large cap tracker dropped by ~7.5%. Stocks rebounded quickly and rallied off its lows to post a 15% gain during the final 60 days of 2014.


Revitalize

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.