Friday, June 23rd, 2023
Pre-market indices are making a clear move lower, erasing hopes that the S&P 500 might keep its five-week winning streak intact. The broader index is down nearly -40 points at this hour, similar percentage-wise to the -200-point drop on the Dow and -109 points on the Nasdaq. From 2023 closing highs a week ago Thursday, major indices have mostly been on a steady slide, with yesterday representing a mild respite on the S&P and Nasdaq.
After today’s opening bell, we’ll see new data from S&P PMI Manufacturing and Services for the month of June. It’s been a tale of two surveys for most of the year to date: while Services last month reached their highest level since April of 2022, Manufacturing has remained below the 50 level which indicates expansion from contraction. As such, Services is expected to cool to around 53 and Manufacturing expects to climb to 49 — almost back to break-even.
But as we have noted previously during this holiday-shortened first week of summer, we’re not currently operating on a lot of data with the potential to move markets. Therefore, while we’re noting a considerable slide in today’s pre-market, it’s not being driven by any surprise economic metric; if anything, it looks more like investors have taken a breather from our mini-bull market and decided to book profits en masse. The S&P looks to book its worst week of trading since early April.
Next week will be something of a different story: Durable Goods, the Case-Shiller Home Price survey, New and Pending Home Sales, Advance Retail/Wholesale Prices, Consumer Confidence and Sentiment, Trade Balance and, a week from today, the Personal Consumption Expenditures (PCE) report will give us more color on the outlines we’ve been tracing in this next leg of economic development. The week after that will bring us Jobs Week, and the week after that Q2 earnings season begins in earnest.
For now, know the earth is not shattering, and the indices will not fall at the speed of gravity indefinitely. Tidy profits are ripe for harvesting, like so many garden tomatoes. We’ll re-address our investment situation once data helps point us in a particular direction, beginning next week.
Questions or comments about this article and/or author? Click here>>
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Profits Ripe for Harvesting
Friday, June 23rd, 2023
Pre-market indices are making a clear move lower, erasing hopes that the S&P 500 might keep its five-week winning streak intact. The broader index is down nearly -40 points at this hour, similar percentage-wise to the -200-point drop on the Dow and -109 points on the Nasdaq. From 2023 closing highs a week ago Thursday, major indices have mostly been on a steady slide, with yesterday representing a mild respite on the S&P and Nasdaq.
After today’s opening bell, we’ll see new data from S&P PMI Manufacturing and Services for the month of June. It’s been a tale of two surveys for most of the year to date: while Services last month reached their highest level since April of 2022, Manufacturing has remained below the 50 level which indicates expansion from contraction. As such, Services is expected to cool to around 53 and Manufacturing expects to climb to 49 — almost back to break-even.
But as we have noted previously during this holiday-shortened first week of summer, we’re not currently operating on a lot of data with the potential to move markets. Therefore, while we’re noting a considerable slide in today’s pre-market, it’s not being driven by any surprise economic metric; if anything, it looks more like investors have taken a breather from our mini-bull market and decided to book profits en masse. The S&P looks to book its worst week of trading since early April.
Next week will be something of a different story: Durable Goods, the Case-Shiller Home Price survey, New and Pending Home Sales, Advance Retail/Wholesale Prices, Consumer Confidence and Sentiment, Trade Balance and, a week from today, the Personal Consumption Expenditures (PCE) report will give us more color on the outlines we’ve been tracing in this next leg of economic development. The week after that will bring us Jobs Week, and the week after that Q2 earnings season begins in earnest.
For now, know the earth is not shattering, and the indices will not fall at the speed of gravity indefinitely. Tidy profits are ripe for harvesting, like so many garden tomatoes. We’ll re-address our investment situation once data helps point us in a particular direction, beginning next week.
Questions or comments about this article and/or author? Click here>>