Markets Close Red, Rotation Continues

Market indexes began the day in the red, and this is where they closed the regular Thursday session. The good news is, the final takes are well off session lows earlier in the day, with the rotation out of relatively inflated tech names continuing.

The Dow, which had been down 384 points at one stage, ended the day down 0.47% or 130 points, breaking a skin-of-its-teeth 4-day winning streak. The S&P 500 was next, down 0.84% or -28.5 points. The Nasdaq fared worst on the day, -1.27% or -140 points.

So we know the rotation continues — Tesla TSLA fell 4%, Facebook FB -3.5%, Amazon AMZN -2% and Apple AAPL, even with a brokerage upgrade at Jeffries, fell 1.75% — but to where? Small-caps had been the answer earlier in the week, though the Russell 2000 was roughly flat on the day. Industrials and Materials, on global growth and including the strongest copper prices in three years, fed the trend. Oil prices were up on a reported OPEC+ agreement, although Natural Gas was down 12%, pulling Energy to even.

Consumer Discretionary was the industry that performed worst today, down 19%, partially on stagnant jobless claims numbers that are still elevated well past what could reasonably be considered a healthy labor market. Chipotle CMG and eBay EBAY led the sector lower on the day, though these stocks are up 43% and 34% year-to-date, respectively.

Markets are still in the green for the week to this point, though this was touch-and-go earlier. Tomorrow we get a new look at the U.S. Current Account Deficit and the University of Michigan Consumer Sentiment Index. Neither is considered a potential bombshell piece of economic data, but either may push the narratives we’ve seen lately, whereby a slowing and potential stagnation hampers the near-term outlook — or at least doesn’t give investors much reason to bid markets much higher.

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