News of China’s further devaluation of the Yuan upon evidence of continued economic weakness sent U.S. stock prices falling during the first hour of trading. However, the bulls made quick mincemeat of the bears and gored them into submission by pushing stocks into positive territory. Other asset classes which distinguished themselves were Gold (commodities) and Homebuilders (real estate) as the day’s top performers in the capital markets.
Market breadth for the SP-500 components was more or less evenly balanced between advancers (261) and decliners (246). New 5-day lows (266) outpaced new 5-day highs (81) while new 52-week highs (41) outnumbered new 52-week lows (25). Key bullish reversals (174) dominated key bearish reversals (9). Technical indicators are beginning to favor a bullish market condition.
|SP-500||2086.05||+1.98 / +0.10%|
|Russell-2k||1208.98||-2.16 / -0.18%|
|VIX||13.61||-0.10 / -0.73%|
|10 Yr Tsy Note Rate||2.13||0.00 / 0.00%|
|30 Yr Tsy Bond Rate||2.81||+0.01 / +0.36%|
|US Dollar Index||96.31||-0.86 / -0.89%|
||1124.26||+15.61 / +1.41%|
|WTI Crude Oil (Cash)
||43.23||+0.11 / +0.26%|
|DJ Real Estate Index||295.12||+0.69 / +0.23%|
|DJ Homebuilders Index||596.17||+5.86 / + 0.99%|
Volume Surging Stocks
- Fidelity Nat’l Information Services, Inc (FIS) @ 70.75 (+8.73%) on 348% volume surge
- Computer Sciences Corp (CSC) @ 66.77 (+4.00%) on 246% volume surge
- HCP, Inc (HCP) @ 39.59 (+4.07%) on 240% volume surge
- Columbia Pipeline Partners, LP (CPPL) @ 19.79 (+3.94%) on 162% volume surge
- Ameren Corp (AEE) @ 42.65 (+1.31%) on 158% volume surge
- Fossil Inc (FOSL) @ 60.67 (-2.32%) on 463% volume surge
- Macy’s Inc (M) @ 64.11 (-5.06%) on 261% volume surge
- Yum Brands Inc (YUM) @ 80.68 (-3.42%) on 229% volume surge
- Yahoo! Inc (YHOO) @ 34.49 (-4.27%) on 133% volume surge
- Mead Johnson Nutrition Co. (MJN) @ 84.87 (-2.38%) on 133% volume surge
Market Moving Events
- Economy / India: June-2015 Industrial Production for India ticked up to 3.78% annual growth vs. consensus @ 3.6% and prior @ 2.7%.
- Economy / USA: The U.S. Treasury Budget for July-2015 was at a -149.2bn deficit vs. expectations @ -132bn and prior @ +51.8bn.
- Central Banks / China: The Yuan, fell to a 4-year low vs. the US Dollar due to the PBOC’s decision to devalue the currency. In response to the move, emerging market currencies also declined as many believe they will have to devalue as well to maintain their competitiveness. Major equity markets in Asia, e.g. Japan, South Korea, Taiwan, China, Singapore, India, Australian and Hong Kong, finished trading in negative territory.
- Economy / China: July-2015 Industrial Production rose less than annually expected @ 6.0% vs. forecasts @ 6.5% and prior @ 6.8%.
- Economy / Europe: July-2015 Industrial Production in the Eurozone disappointed forecasts @ 1.3% annually vs. consensus @ 1.7% and -0.4% monthly vs. consensus @ -0.1%.
- Commodities / Energy: Although the EIA’s latest weekly energy report indicated a smaller than expected decline @ -1.682mm bbl vs. forecasts @ -1.812 mm bbl, inventories remain high @ 456.6 mm bbl while refineries operate @ 96.1% capacity.