Another shakeup in the White House caused some midday volatility after news Steve Bannon is out. Overall, is was another losing week for the Dow and S&P 500, their second-straight, with losses of less than 1%. The Nasdaq fell 0.6% to extend its losing streak to fourth-straight.
Global Economy –European markets fell following the terrorist attacks in Barcelona with Airline stocks suffering the steepest pullback. The FTSE 100 declined 0.9% while the Stoxx Europe 600 dropped 0.7%. France’s CAC 40 index gave back 0.6% while the Belgium20 declined 0.5%. The DAX 30 slipped 0.3%. Germany’s July PPI rose 0.2% month-over-month and was up 2.3% year-over-year, stronger than expectations of unchanged and 2.2%, respectively.
Asian markets traded mostly in the red with Japan’s Nikkei hitting a three-month low. The Nikkei Stock Average sank another 1.2% on Friday to close at its lowest level since May. Hong Kong’s Hang Seng Index stumbled 1.1% and Australia’s S&P/ASX 200 declined 0.6%. South Korea’s Kospi index dipped 0.1% while China’s Shanghai index edged up 0.02%. China July new home prices rose in 56 of 70 cities, down from 60 cities that rose in June.
U.S. Economy-Consumer sentiment sentiment surged 4.2 points to 97.6 in the August preliminary read from the University of Michigan survey, much better than expected. The U.S. QSS figures that track activity for the service sector revealed a 6.2% Q2 year-over-year gain in the aggregate “selected services” measure that was similar to last quarter’s 6.3% gain.
Market Sentiment –The iShares 20+ Year Treasury Bond ETF (TLT) was basically flat after testing a high of $127.15 shortly after the open. Lower resistance at $127-$127.50 was cleared but failed to hold with a move above $128 being a bullish development. Rising support is at $126.25-$126 with backup help at $125-$124.75 and the 50-day moving average easily holding.
The Utilities Select Sector Spider (XLU) made a run to $54.76 and a fresh 52-week peak on Friday. A move above resistance at $54.75-$55 could lead to a triple-top breakout towards $56-$57.50. Support is at $54-$53.75.
Courtesy of Market Geeks