The Shanghai Composite index was clobbered overnight, apparently due to concerns over the continued slowing of the Chinese economy and growing suspicions that the Chinese government will be forced to devalue the Yuan for a third time. A confusing housing report, showing housing starts up and building permits down, did nothing to improve the mood on the Street. Also this Tuesday morning, the price of oil continues to fall, down now to $40.80 per barrel for WTI crude. Rounding out the bad news, Mega-retailer Walmart (WMT) reported worse than expected second quarter earnings and made a significant downward revision to its earnings guidance for the current fiscal year.
But don’t panic just yet. The unsinkable market has already regained its positive momentum and looks as though it will soon be back above breakeven for the day.
At present, stocks are down. The S&P 500 is down 0.16%, the DJIA is down 0.16% and the NASDAQ is down 0.28%.
Here are your Tuesday morning market metrics. The industries showing strength today are Specialty Retail, Personal Products and Household Durables. The industries showing weakness today are Metals & Mining, Semiconductors & Semiconductor Equipment and Diversified Consumer Services.
The VIX is up 3.46% to 13.47 after closing yesterday at 13.02. The most active options this morning is CurrencyShares Euro ETF (FXE) with 7,000 September expiring $103 puts and 7,000 September expiring $104 puts changing hands. The total put-call volume ratio is 1.03 (288,710/279,257). NYSE Adv/Dec 850/1,957. NASDAQ Adv/Dec 811/1,427.
Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can follow Julian’s daily hedged options trades and his unfolding market commentary via twitter: @JulianClose_MIC.