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Message of Market

By Charles Payne, CEO & Principal Analyst

Yesterday, the market staged a late rally that was doomed, as the underlying market breadth was a wreck. There were a lot of curious actions during the session. 

Energy was the biggest losing sector even as West Texas Intermediate (WTI) rallied $2.05 to $55.69 a barrel. Refiners were the biggest drag.

Financials continue to be a disaster this time; Unum Group (UNM) and other life insurers anchored the sector.

Health Care swayed on news Elizabeth Warren and Bernie Sanders have propelled to the top of the Democratic polls, according to Monmouth University. Back in April, Bernie Sanders unveiled his Medicare for all plan in the Senate, sending health insurance stocks lower, especially those in the managed care index. Humana (HUM) was hammered yesterday, tumbling below its 200-day moving average just a month after a strong earnings report and stronger guidance had Wall Street and financial media touting the stock.

Although Consumer Staples finished slightly lower, the stock of the day was Costco (COST), which saw its debut in China create a frenzy of shoppers eager for the big-box experience. 

Social media and video game makers continue to hint at major breakouts, helping the Communication Services sector finish in the green.

S&P 500 Index



Communication Services (XLC)



Consumer Discretionary (XLY)



Consumer Staples (XLP)



Energy (XLE)



Financials (XLF)



Health Care (XLV)



Industrials (XLI)



Materials (XLB)



Real Estate (XLRE)



Technology (XLK)



Utilities (XLU)




With all the data out this week, including the FHFA Price Index +0.2%, I’m beginning to wonder if the U.S. economy is picking up steam. That would be something - meanwhile, the Atlanta Fed is at a 2.3 Gross Domestic Product (GDP) estimate for the quarter.


Charles Payne
Wall Street Strategies


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