In a note to investors, while commenting on the weak JOLT job openings estimate and trading at mid day, Gorilla Trades strategist Ken Berman said:
The major indices are mixed with bearish bias at midday as the epic rally in the key cyclical sectors fizzled out this morning. While the Nasdaq bounced back into the green following a bearish open, thanks to the relative strength of mega-cap tech stocks, the most lockdown-sensitive issues pulled back sharply, weighing on the S&P 500 and the Dow. Treasury yields are down for the second day in a row while gold is pushing higher, as the optimism regarding the reopening push is fading, due to the uptick in the number of new cases.
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Weak JOLT Job Openings Estimate
We got a mixed bag of economic numbers this morning, as even though the highly anticipated NIB Small Business Index was slightly better-than-expected the other two key indicators forecasts. Especially the weak JOLT job openings estimate added to the selling pressure on stocks, but the IBD/TIPP economic sentiment number also provided a bearish surprise. The key overseas indicators also leaned negative, and that led to a bearish shift in investor sentiment globally.
Dow: 27,325, - 248 or 0.9%
S&P 500: 3,193, - 22 or 0.7%
Nasdaq: 9,944, + 19 or 0.2%
Russell 2000: 1,522, - 33 or 2.1%
Market breadth has been weak for the first time in almost a week this morning, with decliners advancing issues outnumbering advancing issues by a 9-to-1 ratio on the NYSE at midday. Only 2 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 30 stocks hit new 52-week highs. The major indices have been trading hovering around their daily VWAPs (Volume-Weighted Average Price) throughout the morning session, pointing to a mixed and choppy afternoon session. Financials, industrials, and energy-related issues have been showing weakness in early trading, and while tech stocks have been very strong, the pullback could continue in the afternoon session. Stay tuned!