Market Step on its
The major market indexes extended their Thursday rally into Friday spurred on by the news delivered in the nonfarm payroll gunfire. The announcement specified that unemployment was down, but so were wages and the number of new jobs created, the latter two missing their forewarn. The combined data suggested to traders that, perhaps, the Fed will entertain further rate cuts later this year. Fed Chair Jerome Powell did not dispel that whim in his speech today either.
Meanwhile, the CBOE Volatility Index (VIX) and the exchange-traded funds (ETFs) that track 30-day (VXX) and 90-day (VXZ) forward-looking expects on the volatility index all show an undeterred upward trend. This signal is typically followed by downward moves in cost over the weeks and months that follow.
Worried Investors Like Walmart Over Amazon
The roller-coaster activity shown by the S&P 500 index (SPX) demonstrates that investors are worried about where stocks will end up next. This like as not explains an interesting dynamic revealing itself in the comparative price action in shares of Amazon.com, Inc. (AMZN) and Walmart Inc. (WMT).
Since the last earnings advertisement, Amazon shares have been on the decline and Walmart shares have been on the rise. Worried investors verge to prefer defensive stocks such as consumer staples companies over growth stocks. Since Walmart ricocheted even higher than the Nasdaq 100 index (NDX) today, it is apparent that investor worries are lingering as earnings age approaches.
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Volatility and Resistance Not Kind to JPMorgan Chase
The price action for shares of JPMorgan Pursue & Co. (
The Bottom Line
U.S. stock indexes extended their rebound despite the fact that volatility indexes stay behind on an upward trend. This indication of investors’ nervousness is reflected in the comparative price action between Walmart and Amazon. Skittish investors would naturally prefer a company like Walmart over Amazon. Leading into earnings salt, it appears that JPMorgan Chase may be showing a volatility signal that has historically been bad for its share price.
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