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Market Recap: Tuesday, August 18

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The markets closed mixed with the Dow lagging behind the NASDAQ and the S&P 500 which both hit record closes. The Final Round panel discusses the latest.

Video Transcript


SEANA SMITH: Well, that wraps up the trading day. Again, the S&P closing at a new record, 3,388, it looks like, as we shake out here the final couple of trades. The number that we were looking for is 3,386, so a new record close for the S&P.

We also had a new intraday high in earlier trading, 3,393. We traded above that level. Remember that that was set back on February 19. So a record day here for the S&P.

Also another record close for the NASDAQ. The NASDAQ above 11,200, up just around 7/10 of a percentage point today. Another record close here for that major average.

And the flip side, the Dow ending in negative territory. It was in negative territory for most of the trading day, closing off its lows, though, down just around a quarter of a percentage point. It's a new day, but it's a similar market story.

When you take a look at some of the sector action that we saw today, the cyclical trade still out of favor here. Financials, industrials, and materials amongst the worst performers in the market. The leaders, on the other hand-- technology, consumer discretionary, communications services. So it seems like investors are sticking with what has been working here over the last several months.

On the econ side of things, we got another reading on housing. US housing starts surging 22.6% in the month of July. Remember, we also got that strong homebuilder number yesterday hitting a record in August. So two strong reports on housing to kick off the week.

Then I also want to mention the action that we are seeing in the treasury market today, because we mentioned yesterday, the 10-year falling back below 70 basis points. Right now, it's at 67. And, of course, that's important here, just the correlation that we've seen between the treasury yield and also financials. I'm sure Jared will dig into that a little bit more for us over the next hour.

But I want to bring in our panelists. We have the full house. We have Rick Newman, Akiko Fujita, Jared Blikre. And we're also joined by Dan Howley for the hour today.

But Jared, let me just kick it off with you, just a record day for the S&P. We talked about it last hour. But what really stands out to you when you take a look at some of the technical levels in the trading action today?

JARED BLIKRE: Well, we don't have much to the upside based on history. But we can-- we do have various methods of finding out where the resistance levels are. So to the upside, 4,430 is the next level where traders are going to be eyeing maybe taking off some profits, judging the market action, seeing-- taking the next step there. But much higher-- 3,600 is really the intermediate term price target to the upside that I've seen talked about the most across the desks that we follow.

To the downside, we got pretty strong support just around 3,300 and slightly below that. So we should see some action in the coming months. We all know we have this election just right around the corner. As Andy Serwer says, November has already started.

And so we'll probably get some more volatility. But we're just not seeing that right now. The VIX is down by about 20 to close at 2,142 here. 10-year T-note yield down another basis point.

And the US dollar index is something I've been watching a lot recently, just because of its slide, having made fresh two-year lows. And it's heavily weighted against the euro. So we are seeing the euro rising to two-year highs versus the dollar. But also versus the Chinese yuan, for instance, it's at the lowest level in about two months.

Just going on some of the other markets that would be affected by a weaker dollar, gold futures up about 65 basis points. Copper futures-- copper pricing in perhaps a better recovery than anticipated, up 2 and 1/2%. And silver closing the day up about half a percent here. Seana?

SEANA SMITH: Yeah, interesting action that we've seen in some of those precious metals here over the last several weeks.