US Stocks Fall After Recent Rebound
3:41 pm Monday, June 27th, 2022
Despite the three main indices dipping in and out of negative territory, the stock market continues to be resilient in the face of selling interest. There’s a lack of conviction today, which is not necessarily a bad thing as far as sentiment is concerned since big rallies, like the one seen last week, have typically been greeted this year with a strong inclination to sell into the strength.
The lack of conviction for either buying or selling can be seen in the advance-decline line. Advancing issues lead declining issues by a slightly greater than 1-to-1 spread at the NYSE but breadth at the Nasdaq is roughly even.
The mega cap stocks are an important downside driver today as evidenced by the Vanguard Mega Cap Growth ETF (MGK), down 0.9%. That weakness has been an influential weight on the major indices; however, the Invesco S&P 500 Equal Weight ETF (RSP) is up 0.1%. Currently, only Apple (AAPL) trades in the green for the mega caps.
Of the 11 S&P 500 sectors, four trade in the green currently with energy (+2.7%) outperforming by a wide margin. This follows last week’s underperformance and has mirrored a bump in oil prices today. The other outperformers are defensive-oriented utilities (+0.9%), health care (+0.7%), and real estate (+0.6%) sectors.
The top lagging sectors are the communication services (-0.9%), materials (-0.8%), consumer discretionary (-0.6%), and financials (-0.2%) sectors.
Total durable goods orders increased 0.7% month-over-month (consensus +0.1%) following an unrevised 0.4% increase in April. Excluding transportation, durable goods orders also increased 0.7% (consensus +0.4%) following a downwardly revised 0.2% increase (from 0.3%) in April.
