SPX Rally Breadth Deterioration
Weakening labor market momentum is creating headwinds for equity valuations
Too little corroboration in the last 3 days to call a trend (5 articles). Watching for it to gain traction.
"On the negative side for stocks was Tuesday's US economic news that was weaker than expected. June factory orders unexpectedly fell -0.3% m/m, weaker than expectations of +0.2% m/m. Also, June JOLTS job openings fell -178,000 to 7.359 million, showing a weaker labor market than expectations of 7.454 million."
"U.S. durable goods orders rose 0.3% month-over-month to $334.77 billion in June, compared to a revised 4% gain in May, but down from market estimates of a 1.6% surge."
"After months of gains that lifted the major indexes from their March lows, momentum has been wobbling with uneven trading in heavyweight semiconductor stocks and weakness in software companies. Declining issues outnumbered advancers by a 1.26-to-1 ratio on the NYSE."
"rising stress over sentiment in market likely in deterioration could determine equity. Further geopolitical headline risk could shed further weight on valuations"
"U.S. initial jobless claims declined by 1,000 from the previous week in the final week of June, recording the lowest level in five weeks, and compared to market estimates of 220,000."