Stock Market Commentary
Regarding economic data, the Jobless Claims report, while slightly higher, continues to show signs of improvement. Inflation also remains benign as Import-Export Prices are relatively flat on a monthly basis and barely increasing year-over-year. European GDP reports from France and Germany, the region’s two largest economies indicate unresolved economic weakness, but the market interpreted this data as a sign of prolonged accommodation from the European Central Bank (ECB).
Technically, strength begets strength and such is the case with this market as the SP-500 now boasts @ 54% of its components trading above the 20-day M.A. vs. 27% last week. The scenario for the 50-day M.A. is similar with @ 45% trading above this key moving average vs. merely 33% last week. The breadth of stocks trading above longer term moving averages, such as the 100-day or 200-day, has not changed drastically as the primary trend for stocks has suffered little damage during the recent correction.
Daily Performance Summary
|Index||LAST||Net Chg||% Chg|
|S&P 500 Index||1955.18||+8.46||+0.43%|
|CBOE Volatility Index||12.42||-0.48||-3.72%|
|10-Year Treasury Note||2.40||-0.01||-0.41%|
|US Dollar Index (Sept-2014)||81.57||-0.03||-0.04%|
|Crude Oil (Sept-2014)||95.58||-2.01||-2.06%|
|U.S. Real Estate Index||285.34||+0.15||+0.05%|
|U.S. Home Construction Index||461.87||+9.12||+2.01%|