The markets rallied back yesterday, recovering some of the losses from the day prior as comments from President Trump helped calm the concern that the trade war negotiations were collapsing. The Dow 30 closed higher on the day by 207, though it pulled back from the highs it reached. The S&P 500 followed suit with a gain of 22 and the Nasdaq added 87. Investors noticed the pullback from the highs of the session as volume was light. This could cause a bit of caution from the bulls in the short term.
Semiconductors (SMH ) were one of the many sectors to enjoy a recovery bounce with a gain that erased about half of their losses earlier this week. The sector has been severely beaten down lately, pushing into correction territory on Monday's decline. Though today saw a recovery, many technical investors are concerned that the 200-day moving average is still in play.
Oil (USO ) also attempted a recovery rally today as investors' concerns over trade were comforted by President Trump's comments. Oil has been a tricky area to invest in lately, as it has trended perfectly sideways for two weeks now. The saving grace for oil bulls is the 200-day moving average, which continues to act as support.
Financials (XLF ), which have shown some relative strength in this latest market pullback, have now recovered almost all of Monday's losses. Technical traders note the pullback to the 200-day moving average, which has held so far along with some prior price support from earlier this year.
Industrials (XLI ) can say they have also held the 200-day moving average thanks to a rally perfectly off the popular moving average. While other sectors broke through the 200-day this week, industrials have managed to hang on for the moment.
Tencent Music (TME ) shares fell to new 3 month lows as the company reported its second earnings since going public. The Chinese media streaming service did beat on earnings, but missed on revenue. Comments that they're now able to charge more for their content were a bright spot for investors, as this change is starting to show in their financials. Shares are still higher than their IPO price, but have been trending lower ahead of the lockup expiration.
Walmart (WMT ) shares were in the news today as the company announced free next-day shipping on about 220,000 products in parts of California, Nevada, and Arizona. The offering comes with no requirements of a membership, which is in contrast to Amazon Prime. Shares of Walmart have been in a steady uptrend, trading above the 200-day moving average.
T-Mobile (TMUS ) and Sprint (S ) have reportedly been considering making some concessions to the Justice Department to win approval for their $27 billion merger. Part of the consideration was selling off their pre-paid cell divisions.