EARNINGS PANEL: ORCL, ADBE

Marley Kayden (0:00)

Welcome back to Market on Close, I'm Marley Kayden. Let's check in on where we ended the day. We've got red across the board for all of our major indices. The S&P 500 is down close to 6 tenths of a percent at 75.9179. On the NASDAQ, we're 29,103.51, that's down more than 1%.

The Dow ended 6 tenths down 52,064.46, shed more than 300 points today. And the Russell 2K ended the day down more than a percent as well, 28,990.95.

As we look across our sector performance on the session today, technology considerably lower, 1.4%, communication services was higher though, consumer discretionary down, while staples did manage to close out the day in the green as well. That's probably going to be the last of the green that we see on the screen here though. Utilities down a percent, real estate down close to a percent here. We saw home sales fall despite the supply levels hitting a record. Industrials are lower on the session. Materials down a percent and a quarter as well on the session. Moving to our last slab here, financials lower a third of a percent. Energy down despite our oil prices now sitting at $102.75 for WTI, and healthcare down a half a percent. As we look across, mega cap tech, we're going to have a mixed picture. Apple having a nice reaction to its foldable phone release, AI updates and a slew of other products from its Surprise and Shine event, ending the day up three and a half percent higher. Amazon though, fractionally lower on the session, Alphabet higher by six-tenths of a percent, Microsoft up, Meta down, giving up some of those gains we saw yesterday after announcing its Muse AI agent, and NVIDIA closing the session two and a third percent lower. Joining me now to break down today's action, Kevin Green, our senior markets correspondent. Kevin, what did you have your eye on during the session today?

Kevin Green (1:52)

Well, we continue to see weakness given the geopolitical risk out there, as well as what's happening in the bond market. We continue to have yields moving higher. And from a technical standpoint, this really kind of looked very similar to what we saw yesterday. We talked about this 15-minute chart and the fact that we saw this fade from this key moving average, this volume weighted average price as the area of resistance for the market overnight. You're looking at the futures, we did see it leverage as the area of support. And then as we kind of gotten closer to the equity open today, that's when we started seeing a little bit of failure. News headlines hitting the tape as well. I think until you can actually see this technical trend shift, you still have to be a little bit cautious within this market. It's still an area where we are having this consolidation and we're not able to really resolve it at the moment. And you're seeing a lot of selling activity under the surface, especially when you're looking at some of these other defensive sectors, as well as maybe some of these under love sectors. So this morning we saw around 95% of the volume on the E-Mini S&P 500 was actually on down ticks and that really did not improve that much throughout the remainder of the day here. So Marley, the trend's kind of turning to the downside here with the S&P 500 probably looks the best out of all three of the major indexes that we follow on a day by day basis.

Marley Kayden (3:06)

I was talking to Tony Zhang earlier today on Trading 360 and he said as far as the S&P is concerned, he's keeping his eye on 7100 to the downside. When you're looking at the chart, what levels are standing out to you?

Kevin Green (3:19)

I would say 7500 is the first key area. That's gonna be kind of your negative gamma exposure area at least for the next couple of weeks. As we get through the September options expiration, which will be something that does move markets. Obviously that's gonna be a quarterly and we see a readjustment going into the December contracts for a lot of the institutional traders out there. Today we were able to hold a key area of support here, but once again, a lot of selling pressure taking place at some key areas of resistance when you're looking at that volumated average price. 7,100, that would be a considerable pullback. Actually, you can align that with maybe some of the other technical trends that we are seeing. I actually have a chart that shows the 10-year treasury compared to the dollar. This compliments exactly what Tony's talking about, this fundamental breakdown that you're seeing under the surface. This is also aligning with a breakdown when it comes to correlations between the dollar and the 10-year. Usually, we see the dollar and the 10-year rate move in tandem with each other. We are seeing this kind of divergence where the dollar is moving lower, 10 years moving higher. That's something that doesn't last for too long. Usually, we'll see for about three weeks. We're going on about a month and a half, almost two months now, Marley. So this is also kind of suggesting that we have maybe some other items to really digest within this market or maybe a little bit more of a pullback before we can try to move higher.