The markets continue to hover near highs as investors are content to simply hold on at these levels. Today investors responded to the lack of a deal between Trump and Kim out of Vietnam as well as a handful of names reporting earnings that were less than expected. The Dow 30 closed the day lower by 70, the S&P 500 lost 7, and the Nasdaq sold off 21.
Sector News
REITs saw the bulls come back today after only a brief pullback this week. The sector moved back above the 20-day moving average after falling below it yesterday for the first time all year long. Despite a small uptick in rates, REITs continue to show consistent strength. For the year the ICF (ICF ) is higher by about 12%.
Consumer Staples (XLP ) were another bright spot in the markets today thanks in part to a recovery bounce in Coca-Cola (KO ), which is about 10% of the sector ETF. Walmart (WMT ) and Costco (COST ) stood out as other performers in the sector today.
Oil Service (OIH ) stocks were weak on the day in a broad-based selloff that included the larger holdings in the sector like Schlumberger (SLB ) and Halliburton (HAL ), which make up 35% of the sector ETF.
Stock News
JC Penney (JCP ) shares enjoyed a strong day today as the company reported earnings that came in much better than expected (beat by 8 cents). Revenue also came in better than expected. The company also said it plans to close 18 stores this year, which investors cheered. Technical traders noted the break above the recent range as well as the move above the long-term downtrend as bullish signals.
Box (BOX ) shares plummeted today despite an earnings report that was better than expected. The company saw revenue come in below expectations and investors were shocked at their lowered guidance going forward. The company saw slowing in its billings and customer additions. Shares fell double digits, erasing the entire month's gains all in one fell swoop.
Square (SQ ) shares sold off today as well despite beating on both earnings and revenue. The company offered weak guidance for the current quarter that was well under analysts expectations. For the year the stock still stands out with its gains of over 39%.
