Indices Digest New Highs and Big Selloffs

US Index Futures are steady today trading between -0.2% and +0.2%. On Friday the NASDAQ closed at an all time high, but only gained 0.1% on the day while the S&P was flat and the Dow Industrials fell slightly. Worse, the small cap Russell 2000 dropped 1.6%, and the Dow Transports fell by 1.0%, raising questions about the breadth of this market and also about why many stocks have started to follow Europe downward.

Speaking of which, European indices are trying to mount a rebound this morning with Paris up 0.5%, Frankfurt up 0.25% and the FTSE flat. Asia Pacific markets fell overnight, led downward by at 1.8% drop for Tokyo, while Seoul and Shanghai both fell about 0.5% and Hong Kong dipped slightly.

China reported mixed economic numbers overnight with retail sales beating expectations but industrial production falling short of estimates. Copper is down 1.8% on this news, while US Crude Oil is up 0.4%. Gold and Silver are sliding again today falling 0.5%-0.6%.

Canada housing starts crushed expectations (264K vs street 247K), a welcome sign amid a housing crisis. In the US, the Empire State Manufacturing Index was not as bad as last month of as expected (-6 vs street -9 and previous -15.6). Tomorrow brings a number of economic events including US retail sales, US industrial production, Eurozone inflation an Australian interest rate decision (no change expected), and five Fed speakers ahead of Wednesday’s Juneteenth US holiday.  

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