Quick Recap of Thursday’s Session:
Stocks finished sharply lower on Thursday, marking the S&P 500’s second worst session of 2012. Major indices started the day slightly higher, but would reach their intraday highs in the opening few minutes of the session before starting a plunge that would last the entire day. A rising Jobless Claims report, a significantly weak Philly Fed, a lower than expected Existing Home Sales figure, and a weak Bloomberg Consumer Comfort report led stocks lower initially. Shortly after the data, Goldman Sachs released a short call to 1285 on the S&P 500, which sent stocks sharply lower. Later, it was revealed that Moody’s had plans to downgrade major global banks at the closing bell, essentially providing a free pass for short sellers until the close (and a big-time eyebrow raise to the true motive behind Goldman’s call). Stocks finished at their worst levels, with most major indices losing more than 2% on the day, sitting at levels similar to June 12’s close.
S&P 500 -2.23%, NASDAQ -2.44%, DJIA -1.96%, Midcaps -2.73%.
Looking Ahead to Friday:
- Overnight we get Manufacturing and Services PMIs from France, Germany, and the Eurozone, as well as Consumer Confidence from Italy.
- There are no economic data releases in the U.S. scheduled for tomorrow.
- Thursday’s selloff was excessive. Though the data wasn’t good, Goldman and Moody’s calls really exacerbated the situation. With no economic data on Friday, it’s anybody’s game. Another sharp move lower would strongly suggest that this summer will be another range-riding volatility coaster (for the third summer in a row). However, a rebound could help establish 1325 as a strong support level for the S&P 500.
Have a pleasant evening.
S&P 500 - Intraday
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