Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

S&P 500 Starts 2015 as Flat as an Ironing Board

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
US equities finished flat on the first trading day of 2015.

S&P 500 (SPX) futures were flashing green pre-market and the index hit an early high of 2072.36, up 0.7% from the December 31 close.

However, sellers came in and knocked the market down, with weak economic data serving as a catalyst.

The December ISM Manufacturing Index fell to 55.2, missing the 57.5 consensus. Markit's manufacturing PMI was 53.9, basically in-line with the 54.0 expected.

November Construction spending fell 0.3%. Economists had forecast a 0.4% gain.

The S&P hit an intraday low of 2046.04 in the afternoon, after which the market went powered higher by 12 points, led by real estate, biotech, and utilities stocks.

The index finished at 2058.20, down 0.03%.

The Dow Jones Industrial Average (DJI) did slightly better with a fractional gain, while the small-cap Russell 2000 (RUT) was notably weak with its 0.5% decline.

There was no obvious catalyst for the spike.

However, US Treasuries and the VIX rose sharply in early trade, and the ISEE Index indicated significant demand for put options relative to call options.

So it's possible that sentiment following Wednesday's sharp afternoon selloff became far too negative in the short-term, setting the stage for a rally into the close. Additionally, given that it's a holiday week, it doesn't take much volume to push the market around.

In international markets, the German 5-year Bund yield went negative for the first time in history on growing hopes that the ECB's QE program will include eurozone goverment bonds. Italan and Spanish rates also fell.

Tomorrow's Financial Outlook

The economics calendar is fairly light for Monday, with December US auto sales being the only important domestic report. Overseas, Germany will release its preliminary December CPI report.

Micron (MU) reports earnings after the close.

With no obvious catalyst on the horizon, the near-term direction remains uncertain as the market digests the impressive gains seen since the October bottom.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE