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12:12 p.m. It had been a drowsy day for a directionless market—and then it found direction. No a lot of direction, mind you, but the S&P 500 has risen 0.4% to 2723.32, while the Dow Jones Industrial Average has advanced 59.31 points, or 0.2%, to 24,765.72, and the Nasdaq Composite has gained 0.7% to 7400.11.
The rise comes even as the U.S. 10-year Treasury yield has made its may back to 3.08%–and now investors are not talking about how high the S&P 500 is going, but the fact that it’s not falling as much. “[The S&P 500 remains] in an outstanding position to make a higher low (2700-2706) and target a fast move to 2,840,” writes Evercore ISI technical analyst Rich Ross.
See you there?
North Korea Vows to Keep Nuclear Weapons…and the Dow Dips 8 Points
6:49 a.m. Now this is a wacky market. Yesterday, stocks tumbled after receiving good news about retail sales. Today, they’re flat even though North Korea is threatening to pull out of a meeting with the U.S. and vowing never to give up nuclear weapons. S&P 500 futures are unchanged, while Dow Jones Industrial Average futures have dropped 8 points. Nasdaq Composite futures have advanced 0.1%.
Chalk it up to a volatile market that clearly has a mind of its own from day to day. DataTrek’s Nicholas Colas notes that the S&P 500 has had 32 moves of 1% or more so far this year, compared to an average of 53 annually since 1958. And the market has a good chance of surpassing that. “While the S&P has already experienced above average levels of volatility, note that the two most typically choppy months of the year are still ahead: August and October,” Colas writes. “We view both months as opportunities for better entry points to buy the market.”
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