Economist's Insights

Today’s Trading Activity – Stock Sectors Diverge as Oil Slide Continues

Jun 21, 2017

A battle between health care (+1.3%) and tech (+0.7%) companies and those focused on energy (-1.6%) left the S&P almost unchanged Wednesday. The Dow fell 0.3% but the Nasdaq, less affected by energy, rallied 0.7%. After a soft rebound early Wednesday, crude prices sank to a 10-month low despite data showing a weekly draw of U.S. crude and gasoline inventories. Despite the drop in supply, U.S. crude production continued to ramp up, reaching its highest level in almost two years. The price of Brent fell 2.7% and officially joined its U.S. counterpart in a bear market. The Dollar weakened but remained near the top of its one-month range (near the bottom of its post-election range). The Treasury curve was little changed when all was said and done. The 2-year yield rose just 0.4 bps (1.35%), the 5-year yield finished 1 bp higher (1.77%), and the 10-year yield added 0.7 bps (2.16%).