The good news is that the index surged for the second day in a row off favorable inflation data and posted new highs for the move in both sessions. The double dose of possible negative news is that the index significantly distanced itself from its early morning high and was unable to post a new closing high for the rebound. That compared to Wednesday’s session when the new closing high for the move was 50 handles higher than the previous one (4210 vs. 4156.25).
The bulls were in firm control of the first hour of the session, but the index’s two days of nearly a 150-handle rally from Wednesday’s low was too much profit, too quick for the bulls to ignore. The bears pressed to breach the premarket low but were unable to get the index under the now psychological support level of 4200.
There was a slight change of heart to the bullish side as the index quickly distanced itself from the actual closing price with the last after-hours print being 7 handles higher (4217 vs. 4209.75).
Exxon Mobil (NYSE: XOM) shares were boosted by a rally in Crude Oil and was the biggest winner of the top components of the index. For the session, the issue advanced by $1.75 1.9% to close at $93.20.
That was 2% better than the decline in the cash index of 0.01%.
Tesla Inc. (NASDAQ: TSLA), which has been alternating up and down days over the past six sessions, was the biggest loser of the top components of the index. For the session, the issue declined by $23.18 or 2.6% to close at $858.89.
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Gene Munster, managing partner at Loup Ventures, reviews Q2 earnings for technology stocks and reveals his picks for the sector in 2023. Read more about the earnings review here.