The markets are navigating the busiest week of earnings releases so far. With over 170 S&P 500 names reporting earnings you have investors of all sizes and durations making major decisions about their investments. Due to this the markets have seen increased volatility and the S&P 500 (SPY ) has been at the forefront of this volatility. Tuesday the SPY fell almost 1.5% as investors became unhappy with the mixed results from earnings. The SPY fell all the way back to the 200 day moving average, but was able to close above it.
The Nasdaq 100 (QQQ ) is lower by over 2% so far this week as the main FANG names have suffered some weakness. Facebook (FB ) sold off almost 4%, Apple (AAPL ) is in correction territory, and the other names are lower by over 2% each so far this week. For the year the QQQ is now higher by just over 1%.
The Dow 30 (DIA ) has also suffered some weakness this week, losing almost 2% so far. Caterpillar (CAT ) and 3M (MMM ) which reported earnings this week have been a drag on the overall performance of the index. Like the other major indicies, the DIA is showing weakness but remains above the 200 day moving average.
HOmebuilders (XHB ) broke to new lows on Tuesday as the down trend continues in this space. WIth interest rates on the rise investors have been comfortable moving money out of the sector and into other areas of the market. The XHB remains in a steady down trend and is now lower by 11% on the year.
Consumer Staples (XLP ) also broke to new lows this week, continuing it's aggressive sell off. For the last 5 days the consumer discretionary space has lost almost 6%. The move to lows on Tuesday pushes the sector down by almost 12% on the year.
Lastly, Volatility (VXX ) spiked 5% on Tuesday as the market sold off. Investors seem content with prices in this $40-$50 range for the last few months as the markets have become more and more unstable.