Another low volatility day. After opening down, the S&P meandered into the green then back into the red with little conviction in either direction. Oil bounced after trading lower overnight and initially weakening further in the early NY morning trade. Oil inventories came out higher than expected, but oil bounced anyway, managing get a stones through from the flat line for the day. S&P opened down, mainly in reaction to oil weakness and Greece / Germany negotiation headlines. Energy led the morning selloff. The crack spread widening further following yesterday's XOM refinery explosion. Gasoline actually turned positive on the day in the afternoon, and led the energy commodities in their rebound. CVRR and NBL reported disappointing results. The USD strengthened marginally, reversing weakness following yesterday's dovish Fed minutes. The mid-day rally was led by the consumer discretionary sector. Names such as BJRI (PT raise), PCLN (earnings beat), DLPH (sold thermal unit), and FL (announced buyback) all outperformed. The materials sector also showed some strength. Oil rallied to its HOD (-0.2%) in late afternoon trading. Equities slide back into the red in the afternoon, after poking above the flatline. Utilities underperformed significantly as bonds sold off marginally.
S&P -0.3% to +0.1%
WTI $49.42 - $52.11 (-5.2% to -0.2%)
Brent $58.17 - $60.40 (-3.9% to -0.3%)
Gasoline $1.5187 - $1.5985 (-3.5% to +1.6%)
EUR-USD 1.1367 - 1.1391 (-0.3% to -0.1%)
Michael Grove, CFA