Us Markets 4-day Rally Losing Steam

Us Markets 4-day Rally Losing Steam

US stocks have slipped today, with technicals in focus and scant key items on the US economic calendar, as the S&P 500 hit yet another intraday record in early trading.



Us Markets 4-day Rally Losing Steam
Us Markets 4-day Rally Losing Steam

After hitting a high, the market looks to be taking a little bit of a breather, but the fundamentals of the US market still look strong – and this rally has been all about an adjusting to rosier expectations. At 12:00 PM in New York City the S&P 500 was little changed at 1,912.28. The US equity gauge earlier has fallen as much as 0.2 %. The Dow has retreated 21.65 points, or 0.1 %, to 16,653.85, while the Russell 2000 has slipped 0.4 %.

A report by the Commerce Department tomorrow might show the US economy contracted 0.5 % in the first quarter, following a preliminary estimate of 0.1 % annualized growth, according to economists surveyed by Bloomberg News. GDP rose at a 2.6 % annualized pace in the previous period. Economists forecast growth of 3.5 % during the second quarter. The markets will be strongly focusing on the GDP number tomorrow. There appear to be two camps of investors: those that believe that the economy is at a point where it reaches a self-sustaining path, and those that don’t. But the markets aren’t being driven as much by the tug and pull of these two camps as once would expect.

Low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market according to Goldman Sachs President Gary Cohn. The Chicago Board Options Exchange Volatility Index climbed 0.4 % to 11.55 today. It is less than 3 points from a record low. “The environment for all the firms is quite difficult right now,” according to Cohn who spoke at an investor conference in New York, today. “What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact.” 


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