Markets tread cautiously, at or near new highs

Markets tread cautiously, at or near new highs

Markets tread cautiously, at or near new highs

Before the afternoon slide, the S&P set a new intraday record. The Nasdaq recorded its 33rd highest closing record for 2021.

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This Hump Day was dominated by a cautious market, which saw financials and energy go lower while defensive play like Healthcare and Real Estate went higher. Except for the Russell 2000 small-cap index, which outperformed majors by +0.58% during the day, all other indexes saw a drop in trading’s final hour. S&P 500 was unchanged (+0.03%), Nasdaq +0.33%, and Dow fell for the third consecutive session: -0.14 span>

We pointed this out yesterday in the column. However, it is not on a losing streak as much as a period of settling. The blue-chip index has lost 0.42% in its last three days, not half of a percentage point. Even before the slide in afternoon, S&P set a new intraday record. The Nasdaq posted its 33rd highest closing record for 2021.

ADP ADPPrivate sector payrolls were disappointing this morning. However, investors seem to have ignored this information when it was announced before the bell rang.Markit Manufacturing PMIFor August, the results were in line with our expectations of 61.1.ISM ManufacturingThe August reading was 59.9% for the month, a slight improvement from its six-month lows. Here’s what July looked likeConstruction spendingThe results exceeded expectations, rising to +0.3% from 0.0% in June’s downwardly revised estimate.

Although Q2 earnings season seems almost insurmountable,Chewy CHWYResults posted were not in line with Zacks consensus. -4 Cents per share was lower than what the analysts expected. This is on revenues of $2.16 billion, which fell short of the estimate by $2.17 billion. The Zacks Rank 2 (Buy), specialty retailer has seen its shares fall 11% during late trading.

Analysts also saw a problem in Q2’s Q3 release: lower revenue guidance, both for Q3 as well as the entire fiscal year. The quarter saw active customers grow by +21%, and sales per user grew by +13%. The stock’s negative performance this year due to lowered guidance is concerning for an industry that appears to be growing. This is the fourth miss in bottom line since 2019’s IPO but it’s also the first quarter.

Tomorrow’s economic print day will be a major one. It includes revisions to Q2 Productivity, Labor Costs and U.S. Trade Balance. Factory Orders. And, yes, we have weekly jobless claims, on the continuing and initial sides. While we may see new post-Covid lows in jobless claims, the long-term picture shows that there is a decent win streak. This is before Friday’s nonfarm payroll report, which should yield about twice the monthly job growth that the ADP reported.
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Publited at Thu, 02/09/2021, 04:32.11+10000

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