It was a seesaw session on Tuesday that eventually finished unchanged; the Street grappled with the uncertainty associated with getting out of the Iranian nuclear deal as looming deadlines approach on potential new trade deals with China, Mexico, and Canada.

The message of the markets was compelling: 

• Dow: +2.89
• NASDAQ: +1.69
• S&P: -0.71
• RUT: +7.44

Market Breadth Remains Bullish

NYSE

• Advancers: 1,502
• Decliners: 1,446
• New Highs: 80
• New Lows: 67

NASDAQ

• Advancers: 1,536
• Decliners: 1,295
• New Highs: 119
• New Lows: 57

Highlights

Oil stocks rallied higher even as crude oil sold off. Yesterday’s inventory release looms large.

Financials have resumed the role of safe havens, getting a boost from an activist investment in Citibank (C).

Industrial names rallied on strong earnings from Expeditors International of Washington (EXPD) and Jacobs Engineering Group(JEC).

Defensive contractors are also helping to lift the industrial sector.

Trucking company Old Dominion Freight Line (ODFL) surged on rumors that Amazon is prepared to make a bid to address its last-mile issues.

However, the most intriguing action came in utilities (XLU), which suffered huge selling during the kind of session that should have seen buying.

S&P 500 Index	-0.03%
Consumer Discretionary (XLY)	-0.42%
Consumer Staples (XLP)	-0.41%
Energy (XLE)	+0.80%
Financials (XLF)	+0.69%
Health Care (XLV)	-0.75%
Industrials (XLI)	+0.69%
Materials (XLB)	-0.21%
Real Estate (XLRE)	-0.70%
Technology (XLK)	+0.22%
Utilities (XLU)	-2.52%

 

The move in the Russell 2000 is compelling as more and more the index, which has been a major underperformer, flashes signs that it is ready to take off.  The index is a better proxy for the domestic economy but also chock full of biotech names that seem to dictate direction.  The index closed above the trend line - a bullish development.

So, the broad market continues to gyrate, grappling for direction, and looking for a catalyst. 

Today’s Session

All the major indices are pointing to a positive open.  Oil is up, and at levels not seen since November 2014, on President Trump’s decision to exit the Iran Nuclear deal.  The U.S. 10-year treasury is also up and over 3%.  There is some economic data out this morning, including mortgage applications and PPI that we will cover in the afternoon note.

Comments

Charles, as always, thank you & FBN. Thank you pres Trump for being the ONLY political person to keep his PROMISES.. bought AAXN before report..will POP today. Ed on 5/9/2018 10:29:01 AM

We thank you for all you do pres Trump & administration. Finally peace thru strength all 3 hostages Now on the way back from N.korea. bull MRKT GROWING buy NVDA, AAXN, SPLK, BA, AAPL, CAT, MRO, TRIP. Ed on 5/9/2018 11:09:38 AM

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