Market Plays The Waiting Game With Congress

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Posted: Aug 06, 2020 1:24 PM
Market Plays The Waiting Game With Congress

Source: AP Photo/Richard Drew, File

The market is barely out of the starting gate today, and is mostly meandering, as investors play the waiting game.

  • Waiting the jobs report
  • Waiting for Congress to get its act together
  • Waiting for final earnings releases to come through

Talk about heavy lifting, the Communication Services sector is trying to single handily lift the entire S&P 500.   CenturyLink (CTL) is the top gainer, but Facebook (FB) and Google (GOOG/L) are putting the oomph in the sector. 

S&P 500 Index

 

-0.12%

Communication Services XLC

+1.50%

 

Consumer Discretionary XLY

 

-0.13%

Consumer Staples XLP

 

-0.38%

Energy XLE

 

-0.52%

Financials XLF

 

-0.27%

Health Care XLV

 

-1.14%

Industrials XLI

+0.05%

 

Materials XLB

 

-0.74%

Real Estate XLRE

 

-0.47%

Technology XLK

+0.10%

 

Utilities XLU

 

-0.14%

 

Market Breadth

NYSE

  • Advancers 1,349
  • Decliners 1,574

NASDAQ

  • Advancers 1,262
  • Decliners 1,956

Economy in Motion

Kansas City Southern (KSU) is having a great session as it continues to bubble up in the takeover rumor mill.  I think an offer is plausible, but it has been in and out of takeover speculation for 15 years.

Historically, transportation has been a great harbinger of where the economy is going.  The DJT has been trading above its 50-day moving average and is breaking out through a key resistance point. Obviously, airline stocks have been a drag.  But truckers and rails, including Kansas City Southern, are powering along strongly.  

American Airlines (AAL) is nearing its 50-day moving average in part to a growing sense the White House and GOP are pressing for more help for the industry.