Dow, S&P, and Nasdaq fight to trend higher after Thursday’s sell-off

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All three major market averages look to fight higher on Friday as they start off the session mixed after Thursday’s sell-off. To start the trading day the Dow (DJI) is lower by 0.1%. At the same time, the S&P 500 (SP500) gained 0.1%, and the Nasdaq Composite (COMP.IND) rose 0.5%.

Friday’s market move comes as nearly 90% of S&P 500 stocks find themselves trading at oversold levels which are labeled as a 1+ standard deviation below 50-DMA according to Bespoke Investment Group.

Treasury yields cool off after jumping earlier in the week. The U.S. 10 Year Treasury yield declined 8 basis points to 3.22% early on while the U.S. 2 Year Treasury yield has come down 4 basis points to 3.12%.

May Industrial Production data came in at +0.2% M/M compared to the +0.4% expected level and +1.4% prior month figure.

The investment community also finds itself to be net sellers of fund assets including both traditional funds and ETFs for the week ending June 15, totaling outflows of $45.2B.

The Morgan Stanley Business Conditions Index declined in June after seeing a bounce back in May, outlining that business conditions are cooling off in the summer months.

In a note, Morgan Stanley stated: “The headline MSBCI fell 19 points in June to 41, a low not seen since April 2020, with underlying details pointing to a deterioration in forward- looking sentiment, alongside companies’ plans to slow their hiring activities. At the same time, price pressures remain high.”

Among active stocks, the World Wrestling Entertainment, Inc. (WWE) finds itself in the red as Chairman and CEO Vincent McMahon steps down from his role amid an ongoing investigation into an alleged secret hush deal with a former employee.