Another low volatility day. The S&P closed down by a hair. Energy, telecom, and financials were the worst performing sectors, down -1.5%, -0.9%, and -0.7% respectively. WTI, already down prior to the refinery explosion, closed at the LOD, $51.54 -3.7%. Energy followed oil lower. SSL cut its dividend and the stock was downgraded. CVE down on weak demand for secondary stock offering. DO and RIG down on negative analyst coverage. Downgrades of CTL and ORAN caused the weakness in the telecom sector. The market popped on the release of the dovish Fed minutes, but could not push into the green. Oil fell to the LOD after the XOM refinery explosion, but gasoline rallied to the HOD on news. Headed into the final hour energy weakened further, although the refiners had relative strength on the widening crack spread. Bonds rallied on the dovish fed minutes which marginally cheapened up the banks and asset managers in the financial sector who get hurt by lower yields. Despite weakness in energy, telecom and financials, the S&P clawed its way back to the flat line in the final hour.
S&P 2092.15 - 2099.16 (-0.4% to flat)
Telecom -1.1% to -0.6%
Energy -1.5% to -0.8%
WTI $51.54 - $53.06 (-3.7% to -0.9%)
Brent $59.93 - $61.6 (-4.2% to -1.5%)
Gasoline $1.5504 - $1.5736 (-2.5% to -1.0%)
Michael Grove, CFA