Retailers Not Feeling The Warmth
The market is lower in early trading. A handful of retail stocks reported earnings and are trading lower this morning. See DKS, SPLS, URBN. The retail etf (XRT) is down nearly 2% in early trading.
But its still early, and growth names on the Nasdaq are bucking the early weakness so far.
Stocks bounced yesterday, but volume levels were pathetic. Volume on the NYSE ran at its second lowest pace of the year. The only day with less volume was Jan. 3rd. So it doesn't appear there was too much conviction behind yesterday's small rally.
Asian markets were higher overnight. Singapore's GDP rose 4.9% year/year. China said it would limit the number of IPOs in the second half of the year to 100. Europe's markets trade mixed.
The 10-year yield is still hovering near low levels around 2.52%.
Gold prices are still below the $1300 level near $1294 today. And oil prices are down a bit to $102.30.
Trading comment: Recent price action has not done much to reveal the short-term direction of the market. The S&P 500 still holds up well, but it could be folks shifting to dividend stocks for the time being until the selling finally reaches those stocks as well. The Nasdaq and the mid-cap indexes continue to trade below their 50-day averages. And recent breakouts in the market have not gained much traction. All in all it feels like a time to err on the side of conservatism. We would prefer more of a pullback in the broader market to offer a better buying opportunity.