The market continues to meander today, but there are big moves beneath the surface.  First, the economic data released after the open saw job openings remain elevated and near all-time highs. The report is rear-view looking, but it is a great help in identifying trends.

Lots of money is rushing into big momentum names, which is powering the Communication Service (XLC) sector ahead of the pack.

• Netflix (NFLX)
• Twitter (TWTR)
• Facebook (FB)
• Alphabet (GOOG/GOOGL)

The last rally in this sector saw XLC close a large gap, and then reserve lower. 

XLC

Monument is now building, and more firms are chiming in with positive comments.  We could see this sector rally to a new high this week or next.

JOLTS

There were declines in job openings, hires, quits and layoffs.  The bottom line is this is still a robust jobs market, but one that has never triggered the kind of mass exodus of quits, even as wage growth has been hot for close to a year.

Dow’s Biggest Anchor

Boeing (BA) reported its orders for June and it comes as no surprise that there were zero orders for the 737 Max (for the third month in a row), and just nine total orders.  For the first half 2019, 239 planes were delivered against 378 in the 1H2018.  Still, Boeing management is churning out 42 737 Max every month.

The stock, however, has reversed itself higher after President Trump announced Qatar is buying a “large number” of commercial planes – and signing the deal today.

There is a good chance late buyers could lift the S&P 500 into positive territory. 

 

 

 

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