Market Review for 1st July (USA)
The major averages finished mixed and the DJIA closed out the month with the worst performance for June in 78 years.
Stocks rallied early on some encouraging economic news, the June Chicago purchasing manager index was reported at 49.6, just shy of the 50 level, which indicates expanding manufacturing activity.
Helping the rally was oil prices pulling back to unchanged after being up as much as $3.50 a barrel and a knee-jerk bounce into the oversold market conditions.
The Dow was up as much as 90.80 points, but the breadth was very narrow and volume was light all session. The financial sector, especially banks and brokers were under attack the entire session.
The Dow finished +3.50, the S&P 500 +1.62 and the NASDAQ was under pressure, closing down almost 1%, as tech stocks came under attack in the afternoon. Selling accelerated late in the session and NYSE issues finished 3/2 negative and NASDAQ issues 2/1 negative.
The problems of the market are well known and many stocks have been beaten down. We do believe a tradable bottom is close in time and price, but probably not at the moment.
Today - Foreign markets were lower overnight. Stock futures are indicating a solidly lower opening after oil rose almost $2.50 a barrel after the International Energy Agency revived concerns about long-term supply shortages and tension between Israel and Iran raised fears about possible outages in the near term.
Filed under: Market Commentary (USA)