All aboard the broadening train?
Main U.S. equity index futures edge green; small caps jump
Jun PPI MM, YY > estimates
Jun PPI exFood/Energy MM, YY > estimates
Euro STOXX 600 index up ~0.4%
Dollar ~flat; crude up; gold, bitcoin trade lower
U.S. 10-Year Treasury yield edges up to ~4.20%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
ALL ABOARD THE BROADENING TRAIN?
The spotlight shining on market concentration has intensified this year. In the wake of Thursday's cooler-than-expected CPI data, which added to expectations that the Fed may soon finally start cutting rates, traders couldn't help but notice some pronounced relative strength shifts that suddenly came barreling down the track.
Through Wednesday's close the benchmark S&P 500 index .SPX had gained around 18% so far this year, while the NYSE FANG index .NYFANG, which includes all of the Magnificent Seven stocks, had advanced about 41%.
Against this, the equal-weighted S&P 500 index .SPXEW was only 4.6% higher, while the small-cap Russell 2000 .RUT was up just 1.2%.
On Thursday, rumbles were felt far and wide as the SPX suffered a near-1% slide, while the NYFANG tumbled 3.5%. The SPXEW rallied 1.2%, while the RUT jumped about 3.6% for its biggest daily gain since November of last year.
Many market watchers have been longing for a broadening, and of note, on Thursday, the Nasdaq Composite .IXIC which tumbled nearly 2%, posted an advance/decline ratio of better than 3-1. Looking back to mid-1995, that's never happened before.
Meanwhile, on Wednesday, the SPXEW/SPX ratio hit its lowest level since mid-September 2003:
On Thursday, as the equal-weighted index outperformed, the ratio posted its biggest jump since early-November 2020.
That November 2020 thrust preceded a more than two-year period that the equal-weighted version ultimately outperformed the cap-weighted version.
Admittedly, the ratio's longer-term pattern looks a bit ominous, given what appears to be a late 2023-early 2024 head & shoulders neckline break. However, provided Wednesday's 1.1888 low holds, Thursday's ratio vault, essentially off its late-2008 trough, may suggest room for a more significant turn in favor of the equal-weighted index.
(Terence Gabriel)
*****
FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:
JPMORGAN, MACQUARIE JOIN SEPTEMBER U.S. RATE-CUT BANDWAGON - CLICK HERE
EARNINGS SEASON BRINGS NIGGLING WORRY FOR NERVOUS INVESTORS - CLICK HERE
POLITICS OUT, DATA AND CENTRAL BANKS IN, UNTIL NOVEMBER - CLICK HERE
DON'T BANK ON EARNINGS TO BOOST LUXURY NAMES - CLICK HERE
SWITZERLAND AND SWEDEN - CLICK HERE
ROTATION TIME - CLICK HERE
MORNING BID: TOKYO'S ART OF INTERVENTION - CLICK HERE
SPXEWSPXRatio07122024 https://tmsnrt.rs/4eYqcWw
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
</body></html>Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
