Economic Events and Earnings for August 27
Published: Wed, 08/27/14
FT71 (FutureTrader71) levels for this week
FT71 Levels 2013.00 MM Target * 2005.00 MM Target * 2001.25 MM Target * 2000.50 MM Target * 1985.75 prior HOY * 1979.75 MCLVN * 1971.25 MCVPOC * 1970.75 - 1969.00 gap zone 8/19 * 1967.50MCHVN/NVPOC * 1956.25 CLVN and thin LVN zone 8/15 * 1945.50NVPOC * 1937.75 CLVN + former retracement high * 1930.00NVPOC
Equity indices ended the Tuesday session on an upbeat note with small-cap stocks pacing the advance. The Russell 2000 jumped 0.9%, while the S&P 500 posted a slim gain of 0.1% with seven sectors ending higher.
In some ways, today's session resembled yesterday's affair as the key indices climbed out of the gate, reached their highs during the first half of action, and spent the remainder of the session in a slow retreat from their best levels of the day. Trading volume was light once again, but today's session generated a bit more activity (501 million) than what was observed yesterday.
Biotechnology outperformed for the second day in a row with the iShares Nasdaq Biotechnology ETF (IBB 275.71, +3.08) climbing to a new record high. The ETF rose 1.1%, while the health care sector (+0.4%) was the only outperformer among countercyclical sectors.
Meanwhile, the cyclical side fared a bit better with energy (+0.5%) and financials (+0.3%) spending the entire session ahead of the broader market. Energy rebounded from recent underperformance, while crude oil added 0.5% to $93.85/bbl.
For its part, the financial sector received support from heavily-weighted components like Citigroup (C 52.13, +0.50) and JPMorgan Chase (JPM 59.74, +0.40). Similarly, foreign banks fared well with the likes of Deutsche Bank ( DB34.55, +0.66) and UBS (UBS 17.96, +0.11) posting respective gains of 2.0% and 0.6%.
The remaining cyclical sectors ended on a mixed note with consumer discretionary (+0.1%) and technology (+0.1%) finishing right behind the S&P 500, while industrials (-0.3%) settled in the red.
In the discretionary space, shares of Best Buy (BBY 29.80, -2.19) fell 6.9% after the company's cautious second-half outlook masked better than expected earnings. On the flip side, DSW (DSW 30.99, +2.62) soared 9.2% in reaction to strong results. Overall, retailers displayed strength with the SPDR S&P Retail ETF (XRT 89.17, +0.66) climbing 0.8%.
On the downside, the industrial sector lagged amid weakness in transport stocks. Alaska Air (ALK 46.28, -0.61) and Delta Air Lines ( DAL 39.90, -0.62) both lost near 1.4%, while the Dow Jones Transportation Average shed 0.4%.
Treasuries ended little changed after surrendering their overnight gains. The 10-yr yield finished at 2.39%.
Also of note, Presidents of Russia and Ukraine met in Minsk today for the first time since the conflict between the two governments broke out. The meeting did not produce any results, but both parties have agreed to return to the capital of Belarus for future talks.
Economic data included Durable Orders, FHFA Housing Price Index, Case-Shiller 20-city Index, and Consumer Confidence:
In some ways, today's session resembled yesterday's affair as the key indices climbed out of the gate, reached their highs during the first half of action, and spent the remainder of the session in a slow retreat from their best levels of the day. Trading volume was light once again, but today's session generated a bit more activity (501 million) than what was observed yesterday.
Biotechnology outperformed for the second day in a row with the iShares Nasdaq Biotechnology ETF (IBB 275.71, +3.08) climbing to a new record high. The ETF rose 1.1%, while the health care sector (+0.4%) was the only outperformer among countercyclical sectors.
Meanwhile, the cyclical side fared a bit better with energy (+0.5%) and financials (+0.3%) spending the entire session ahead of the broader market. Energy rebounded from recent underperformance, while crude oil added 0.5% to $93.85/bbl.
For its part, the financial sector received support from heavily-weighted components like Citigroup (C 52.13, +0.50) and JPMorgan Chase (JPM 59.74, +0.40). Similarly, foreign banks fared well with the likes of Deutsche Bank ( DB34.55, +0.66) and UBS (UBS 17.96, +0.11) posting respective gains of 2.0% and 0.6%.
The remaining cyclical sectors ended on a mixed note with consumer discretionary (+0.1%) and technology (+0.1%) finishing right behind the S&P 500, while industrials (-0.3%) settled in the red.
In the discretionary space, shares of Best Buy (BBY 29.80, -2.19) fell 6.9% after the company's cautious second-half outlook masked better than expected earnings. On the flip side, DSW (DSW 30.99, +2.62) soared 9.2% in reaction to strong results. Overall, retailers displayed strength with the SPDR S&P Retail ETF (XRT 89.17, +0.66) climbing 0.8%.
On the downside, the industrial sector lagged amid weakness in transport stocks. Alaska Air (ALK 46.28, -0.61) and Delta Air Lines ( DAL 39.90, -0.62) both lost near 1.4%, while the Dow Jones Transportation Average shed 0.4%.
Treasuries ended little changed after surrendering their overnight gains. The 10-yr yield finished at 2.39%.
Also of note, Presidents of Russia and Ukraine met in Minsk today for the first time since the conflict between the two governments broke out. The meeting did not produce any results, but both parties have agreed to return to the capital of Belarus for future talks.
Economic data included Durable Orders, FHFA Housing Price Index, Case-Shiller 20-city Index, and Consumer Confidence:
- Durable goods orders soared 22.6% in July after increasing an upwardly revised 2.7% (from 1.7%) in June, while the Briefing.com consensus expected an increase of 7.0%
- The headline surge was due to Boeing (BA 128.60, +0.27) reporting record-setting orders in July, which resulted in a 318% increase in orders of nondefense aircraft and parts, leading to an outsized 74.2% increase in transportation orders
- Excluding transportation, orders fell 0.8%, while the consensus expected an increase of 0.6%
- The June Housing Price Index from the FHFA rose 0.4%, which followed a revised increase of 0.1% observed during the prior month (from 0.4%)
- The Case-Shiller 20-city Home Price Index for June rose 8.1%, while an 8.3% increase had been expected by the Briefing.com consensus
- The Conference Board's Consumer Confidence Index rose to 92.4 in August from a downwardly revised 90.3 (from 90.9) in July, while the consensus expected a decline to 88.3
- The Present Conditions Index increased to 94.6 in August from 87.9 in July, while the Expectations Index fell to 90.9 from 91.9
- Nasdaq Composite +9.4% YTD
- S&P 500 +8.2% YTD
- Dow Jones Industrial Average +3.2% YTD
- Russell 2000 +1.0% YTD
Economic Events
| Time | Cur. | Imp. | Event | Actual | Forecast | Previous | |
|---|---|---|---|---|---|---|---|
| Wednesday, August 27 | |||||||
| 07:00 | USD | MBA 30-Year Mortgage Rate | 4.28% | 4.29% | |||
| 07:00 | USD | MBA Mortgage Applications (WoW) | 2.8% | 1.4% | |||
| 3 min | USD | Crude Oil Inventories | -1.286M | -4.474M | |||
| 3 min | USD | EIA Weekly Distillates Stocks | -0.443M | -0.960M | |||
| 3 min | USD | Gasoline Inventories | -1.079M | 0.585M | |||
| 13:00 | USD | 5-Year Note Auction | 1.720% | ||||
Earnings Reports for wednesday, August 27