March 19, 2024

Fed helps S&P to new highs

Index & Sector performance 6/18/14

The Market:

After what amounted to a roughly 1.5% correction from the 6/9/14 highs to the 6/12/14 lows, the S&P 500 has since rallied and as of today’s close made a new intraday and closing all time high.  The majority of the gains were realized after the FOMC statement and rate decision where the Fed left the rate unchanged and lowered monthly bond purchases by $10B.

We have taken a cautious stance on the broad market since 6/6/14 due to multiple overbought conditions across multiple time frames.  While the pullback from 6/9 – 6/12/14 helped to unwind the very short term overbought conditions, we remain cautious even with today’s breakout and believe the risk of a more significant pullback is high.

On a day where there was green across the WSC Scoreboard, the Utility sector (XLU) was the decisive leader closing up 2.27%.  The rally inside the sector appeared broad with many stocks closing up over 2% while the lone loser we saw in the XLU was ONEOK (OKE) which finished down 0.20%.

In economic news, the big data point today was the aforementioned FOMC rate decisions and statement.  Tomorrow’s key data points will be the Unemployment claims and the Philly Fed Manufacturing Index.

 

Economic Calendar week of 6/16/14

 

Reporting EPS 6/19/14 Pre-Market:

Companies reporting EPS 6/19/14 pre-market


Analyst Comments:

Upgrades 6/18/14

Downgrades 6/18/14

Initiations 6/18/14

Price Target Changes 6/18/14

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