Day Traders Diary

7/20/15

The stock market began the week on a higher, albeit sleepy, note with the S&P 500 (+0.1%) testing its record close from May. The benchmark index backed away from its session high into the close, settling a bit behind the Nasdaq Composite (+0.2%), which marked a fresh closing record high at 5,218.86.

Equity indices started the Monday session near their flat lines with the S&P 500 spending the initial hour in the red; however, influential sectors like technology (+0.5%), financials (+0.1%), and health care (+0.3%) displayed early strength, underpinning the broader market.

The S&P 500 was back in the green by 11:00 ET and slowly inched higher into the afternoon. Seven sectors ended the day with gains while energy (-1.3%), materials (-0.9%), and utilities (-0.5%) spent the session below their flat lines.

Notably, the energy sector retreated alongside crude oil, which fell 1.6% to $50.40/bbl. Meanwhile, the growth-sensitive sector struggled throughout the session, widening its July loss to 4.5%, even after Halliburton (HAL 40.75, +0.76) climbed 1.9% after reporting better than expected results.

On the upside, the technology sector held the lead throughout the session with gains among the likes of Apple (AAPL 132.07, +2.45), Facebook (FB 97.91, +2.94), and Visa (V 72.70, +1.82) overshadowing a 1.0% decline in the shares of Google (GOOGL 692.84, -6.78). Also of note, IBM (IBM 173.22, +0.71) gained 0.4% ahead of its quarterly report.

Interestingly, high-beta chipmakers could not keep pace with the technology sector, evidenced by a 0.7% decline in the PHLX Semiconductor Index. Similarly, high-beta transport stocks struggled (Dow Jones Transportation Average -0.4%) while the broader industrial sector (unch) settled just above its flat line. Lockheed Martin (LMT 205.13, +3.95) was in the news, spiking 2.0% after reporting better than expected results and announcing the acquisition of the Sikorsky helicopter unit from United Technologies (UTX 110.48, -0.26) for $9.0 billion in cash.

Elsewhere, Treasuries slipped into the red during overnight action and they settled near their overnight lows with the 10-yr yield rising two basis points to 2.37%.

Investor participation was relatively light today with 720 million shares changing hands at the NYSE floor.

Today's session was free of economic data and investors will not receive any data tomorrow either.

Nasdaq Composite +10.2% YTD

Russell 2000 +4.6% YTD

S&P 500 +3.4% YTD

Dow Jones Industrial Average +1.6% YTD