The stock market is mixed Friday after an early bounce and trading looks set to remain very volatile.
Investors are looking to position for a long weekend after coming into the session with the broader market down 6% for the week, which would be its worst performance since March 2020. The choppiness may get worse as volume decline, with many investors looking to get a jump on the holiday.
Six of 11 S&P sectors are higher, with Consumer Discretionary at the top. Energy is the weakest as crude tumbles.
The 10-year Treasury yield is down 8 basis points to 3.23%, while the 2-year is up 1 basis point to 3.17%.
Jefferies said equity investors should be bracing for an inversion in the yield curve.
May Industrial Production data came in at +0.2% M/M compared to the +0.4% expected level and +1.4% prior month figure.
“This isn’t a terrible outcome after a decent run with manufacturing output overall still up 4.8% year-on-year, but the signs of a loss of momentum and the recent weakness in some of the regional indicators mean there is reason for caution,” ING said.
The May index of leading economic indicators fell 0.4%, as expected.
“The past few months have marked the first string of declines in the index since the spring of 2020 when the economy screeched to a halt,” Wells Fargo said.
The investment community also finds itself to be net sellers of fund assets including both traditional funds and ETFs for the week ending June 15, totaling outflows of $45.2B.
The Morgan Stanley Business Conditions Index declined in June after seeing a bounce back in May, outlining that business conditions are cooling off in the summer months.
In a note, Morgan Stanley stated: “The headline MSBCI fell 19 points in June to 41, a low not seen since April 2020, with underlying details pointing to a deterioration in forward- looking sentiment, alongside companies’ plans to slow their hiring activities. At the same time, price pressures remain high.”
Among active stocks, the World Wrestling Entertainment finds itself in the red as Chairman and CEO Vincent McMahon steps down from his role amid an ongoing investigation into an alleged secret hush deal with a former employee.
Energy stocks are dominating the list of largest S&P decliners, while Carnival Cruise is the biggest gainer after a new agreement with MGM.