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Market Updates

Bulls look to build to the close

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We've seen a slight up-tick in the major market indexes with an hour left until the close as the Dow Industrials (INDU) 8,506 +0.41%, now up 35-points breaks above some intra-day resistance at the 8,500 level as bulls look to try and apply some pressure on bears into the close.

Sector action begins to build positive with the Networking (NWX.X) 161.88 +2.48%, Semiconductor (SOX.X) 341 +2.46% and HMO Index (HMO.X) 572.8 +2.13% now showing gains greater than 2%. At the 01:00 PM EST update only the NWX.X and SOX.X managed to hold gains greater than 1%.

Also picking up some bids are the GSTI Software Index (GSO.X) 111.65 +1.18%, which now breaks just above late-morning resistance of 111.50 as Intuit (NASDAQ:INTU) $28.76 +11.4% leads the sector higher after yesterday's raising of Q3 guidance. Shares of Microsoft (NASDAQ:MSFT) $25.89 +0.58% have been finding intra-day resistance just under the $26.00 level and currently hold the number 2 slot on today's most active list at just over 53 million shares traded.

Other sectors now holding gains greater than 1% have the Combined Telecom Index (IXTCX) 128.55 +1.52% and S&P Retail Index (RLX.X) 301.66 +1.12% attempting to build some late session bullishness into the close.

Treasuries closed near their highs of the session, but still finished lower as the shorter-dated 5-year Treasury futures (fv03m) $113'090 -0.12% finished down 4/32, the 10-year June futures contract (ty03m) $114'165 -0.2% traded off 7/32 and the longer-dated 30-year June futures contract (us03m) $113'03 -0.27% fell 10/32. The benchmark 10-year YIELD ($TNX.X) rose to 3.929% at the close.

Market internals have improved modestly since the 01:00 PM EST mark with the NYSE now showing advancers outnumbering decliners by a 16 to 13 margin (17:14 at 01:00), while NASDAQ breadth improves with advancers outnumbering decliners by a 16 to 13 ratio (15:14 at 01:00).

The number of new 52-week highs has tapered off a bit from the 01:00 hour, with the NYSE now reporting 140 stocks having traded a new 52-week high today, while NASDAQ reports an additional 6 stocks adding to the new 52-week high list at 133.

Jeff Bailey

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