The SPX index closed above 1400 for the 3rd straight day this week, but it continues to be on lighter and lighter volume. Sellers have returned to other markets today (namely commodities and currencies markets), and futures are showing a potential open below 1400 today, though buyers have stepped in below that level the last 2 days. Interestingly, as strong as this week has felt, the market is up less than 1% on the week, as last Friday’s close was at 1391.
- Risk-off began in Asia, as Asian markets ended the week broadly lower (0-1.0% across most of the region). European markets followed Asia into the red on quiet volume overall, trading down close to 1% right now.
- Commodities have seen some pressure, with copper and crude oil both down 1.5% after a strong showing earlier in the week. Natural gas had an interesting reversal yesterday, going from 5% higher after the inventory report to close down 1% by the close. It is down another 2% this morning.
- The dollar and Treasury bonds are broadly higher, with emerging market currencies showing the most significant weakness this morning
- Earnings last night from JWN (up 1% pre-market) and NVDA (up 4%) were better than expected, while JCP missed (down 10%)
- Quiet on the data front here. China had another weak macro data point, showing lower than expected export and import growth.