Stock Market Today
Volatility remains high in the stock market as traders are anxious about the upcoming U.S. elections, which is only six days away. Assuming Joe Biden will win the U.S. presidential election could be a mistake because elections polls are highly unreliable.
There are enormous challenges for the U.S. economy as daily coronavirus cases have surged back to their record level. There are still no strong signs in terms of a potential coronavirus vaccine. Pfizer (NYSE:PFE), which is leading the charge, has said that it is still far from reaching the key milestone yet.
The Asian stock market closed mixed today as investors remain mostly cautious. The ASX 200 index was trading up by 0.11%. The Korean Kospi index also moved higher by 0.11%, while the Nikkei index declined 0.38%. The Shanghai index rose by 0.29%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth took a nosedive yesterday. 57% of the Dow Jones stocks traded above their 200-day moving average. This is a change of -5% from a day earlier.
The S&P 500 stock breadth continued to weaken yesterday. 63% of the shares traded above their 200-day moving average. This is a change of -4% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading lower by 153 points today. In terms of economic data, investors will be looking at the U.S. crude oil inventory data. Crude oil prices are trading below the $40 dollar, and if the inventory data miss the forecast of 1.5 million, it is likely that we may see more pain for the U.S.
The Dow Jones cash index, not the futures, is once again close to its 50-day SMA on the daily time frame. The price is still trading above the 100-day and 200-day SMA, which means that the bull trend is still in place. The Dow futures have already dropped below the 50-day SMA, and if the Dow index falls below the 100-day SMA, it is highly likely that we may see a more intense sell-off.
The S&P 500 cash index, which represents the broader stock market, is still at war with its 50-day SMA on the daily time frame. This means that the bulls are struggling to push the price higher, and we need a new catalyst for this to happen. Having said that, the price is still above the 100 and 200-week moving averages, which means the bull trend is firmly in place.
Stock Market Rally
The S&P 500 stock index closed in negative territory yesterday; the index dropped by 0.30%. The industrial sector led the index lower - 8 out of 11 sectors closed lower.
The Dow index also fell yesterday; the Dow stocks moved the index lower by 0.80%. 15 shares of the Dow fell, and 14 closed higher.
The NASDAQ composite, a tech-savvy index, advanced 0.82% yesterday.
S&P 500 Leaders and Laggards: Xilinx (NASDAQ:XLNX) and Franklin
Xilinx stock contributed the biggest gain, soaring 8.56%. Franklin stock was the largest drag; it fell by 13.6%. The S&P 500 stock index is up 4.9% so far this year.
Dow Jones Leaders and Laggards: Salesforce (NYSE:CRM) and Boeing
Salesforce stock advanced higher by 3.44% and was the biggest mover for the Dow, while Boeing (NYSE:BA) stock declined 3.48%, the biggest drag for Dow Jones Industrial Average index.