Market Perspective for September 7, 2021

Equities were mixed on Tuesday. Large-cap technology stocks rallied and propped up the Nasdaq, which gained 0.07 percent on the day. The S&P 500 Index slipped 0.34 percent, the Russell 2000 Index 0.71 percent and the Dow Jones Industrial Average 0.76 percent.

SPDR Consumer Discretionary (XLY), SPDR Communication Services (XLC) and SPDR Technology (XLK) gained 0.29 percent, 0.26 percent and 0.05 percent, respectively, on the day. These three funds are dominated by Google (GOOGL), Facebook (FB), Netflix (NFLX), Amazon (AMZN), Tesla (TSLA) and Apple (AAPL). All of these stocks were green on Tuesday with Tesla and Netflix each up more than 2 percent. The worst performer of the bunch was Google, yet it still climbed 0.38 percent.

This holiday shortened week will see the release of few economic data reports. The biggest will be the producer price index on Friday. Economists predict a 0.6 percent increase in August, down from 1.0 percent in July.

The Job Openings and Labor Turnover Survey (JOLTS) is out on Wednesday. June’s report showed 10.1 million job openings and economists expect that number held steady in July.

Chinese shares shrugged off the deepening crisis at real estate developer Evergrande. The company has more than $300 billion in liabilities and cannot pay, sending its bonds tumbling in Shanghai. It has already started selling off pieces of the firm in a bid to repay creditors. Chinese shares still rallied. iShares China Large Cap (FXI) gained 2.36 percent with China tech companies tracking U.S. tech firms on Tuesday.

The 10-year Treasury yield bounced to 1.37 percent. Crude oil fell less than $1 to $68.35 per barrel. Natural gas pulled back to $4.57 per mmBTU after gaining more than 20 percent over the prior two weeks of trading.

The U.S. Dollar Index bounced 0.49 percent on Tuesday, bucking a two-week decline. Strength in Chinese shares helped lift iShares MSCI Emerging Markets (EEM) 0.58 percent. The developed market iShares MSCI EAFE (EFA) saw a smaller rise of 0.07 percent.

0
    0
    Your Cart
    Your cart is emptyReturn to Shop