Yesterday, we saw signs of weakness from consumer and retail bellwethers, Disney (DIS); Macy’s (M) and Fossil (FOSL). Although still at historically low levels, today’s unexpected increase in Jobless Claims (week of May-7-2016) @ 294k vs. consensus @ 267k and previous @ 274k, along with a 10k plus uptick in its 4-week moving average, stirred anxiety over the U.S. economy.
For the most part, the stock market took it on the chin today and was left standing relatively unchanged. In fact, the S&P 500 (SPY) successfully tested support at its 50-day moving average for the second time over the last six trading sessions. The DJ-30 Industrials (DIA) are also holding the line, while the Nasdaq-100 (QQQ) and Russell-2000 (IWM) are having difficulty reclaiming their uptrends. I believe what we are really witnessing is a shift away from growth and towards value.
No further comments this evening….
(Please see our ETF asset class performance summary below)