The Dow moved higher today as volatility continues. Trading volume on the Dow was lower however as the industrial average gained 177 points to 18,212. The tech heavy NASDAQ however moved up on stronger volume and appears to be decoupling from the Dow as investors favor tech related stocks at this juncture. Caution is still advised and IBD indicates the rally is under pressure with low volume up days and high volume down days.
The odds of a Fed rate hike in September just took a hit after core retail sales data showed a 0.1% decline in August. Economists were off by a mile as they had expected a gain of 0.3%. Overall retail sales were off by 0.3%. Chris Rupkey, CFE of MUFG Union Bank said that the US economy is “sputtering on all cylinders” and that consumers and factories are pulling back on spending and investing.
Shares of Apple led tech stocks higher today after the company said it was seeing strong sales of the new iPhone 7. The news sparked a rally in the tech sector and chip stocks as a group surged.
Oil prices traded slightly higher with WTI crude moving up 0.8% to $43.90 a barrel. Gold continues to fade as the US dollar remains firm. Gold closed the day off $8.50 at $1,317 an ounce.