Intraday Market Update
US equity markets gapped higher at the open after solid gains in Asia and Europe. The S&P 500 reached a high of 1,042 (+20 points higher than Friday's close) around noon but has since given back most of the gains and is trading near the lows of the session at 1,025. The major indexes are struggling to hold on to any gains. The Russell 2000 has lost -0.75%. Stocks in Asia were all higher led by China's Shanghai Composite Index tacking on +1.92%. European markets were sharply higher with most indexes gaining +2% to +3%. Traders in the US returned from the long holiday weekend with an appetite for risk, however, bullish hopes were dashed after a larger than expected deterioration in the US ISM Non-Manufacturing Index.

The headline June ISM Non-manufacturing index fell to 53.8 from 55.4. This marks the eighth month in the past ten months of a reading above 50.0 which separates expansion from contraction. Estimates called for a reading of 55.0. This report is considered to be a measure of economic strength in the service sector as opposed the ISM Manufacturing Index which posted a worse than expected decline to 56.2 in June from 59.7 in May. Just like last week's manufacturing reading the underlying components were not positive. New orders fell -5.5 points to 48.0 and employment declined by -0.7 points to 49.7, indicating contraction in employment in the services sector. The survey indicated that respondents were mostly positive about business conditions but there was concern about the effect of employment on the economic recovery.

Equity news is light. Walgreen Co (WAG) reported June same store sales of +2% which was better than expected. WAG said its pharmacy sales were negatively impacted by generic drug introductions and a light flu season. Shares of WAG are +1.25% higher, however, the stock has still lost -10% over the past week. Netflix (NFLX) is higher after the company announced that it has reached a long term agreement with Relativity Media which will allow NFLX to release major films owned by Relativity that will be licensed exclusively to NFLX for streaming to its subscribers.

Commodities/Currencies:
Front month crude oil is about -$2.00 off of its highs. Gold is down -1% while copper, natural gas, and silver are all higher. The 10-year US Treasury note is higher which is not supporting the rally in equities.

Core Sector List:
Overall reading: 9 sectors advancing, 7 sectors declining
Strongest Sectors: Software, Oil Services, Banks
Weakest Sectors: Gold Miners, Biotechnology, Retail

S&P 500 - Daily and 30-minute Intraday Charts:

Dow Jones - Daily and 30-minute Intraday Charts:

NASDAQ - Daily and 30-minute Intraday Charts:

Russell 2000 - Daily and 30-minute Intraday Charts: