In the latest premarket activity, the widely recognized SPDR S&P 500 ETF Trust ($SPY) experienced a decline of 0.7%, while the actively traded Invesco QQQ Trust ($QQQ) faced a slight drop of 0.1%. This downturn is largely attributed to mixed quarterly earnings results from key technology sector players that have set the tone for market sentiment. Meanwhile, the futures market was also showing signs of weakness, with S&P 500 Index futures retreating by 0.7%, Dow Jones Industrial Average futures slipping by 0.4%, and Nasdaq futures declining by 1%.
Such fluctuations emphasize the volatility currently present in the market as investors digest recent financial performances. Despite a favorable decrease in interest rates, mortgage applications in the United States fell by 2.2% for the week ending July 19. This situation was driven primarily by a significant 4% decline in new home applications, contrasting with a minor 0.3% increase in refinancing activity.
The data, reported by the Mortgage Bankers Association, illustrates the complex dynamics affecting the housing market, especially given the prior week’s 3.9% increase in mortgage applications. Market watchers are keenly anticipating the release of the S&P PMI composite flash report for July, scheduled for 9:45 am ET.
This will be followed by the new home sales report for June at 10 am ET, which could further impact market expectations. Also on the agenda is the weekly EIA petroleum status report, expected at 10:30 am ET, alongside the Atlanta Fed’s Survey of Business Uncertainty bulletin for July at 11 am ET.
These reports are critical for assessing upcoming shifts in both energy and economic sectors. In the cryptocurrency sector, Bitcoin recorded a 1.4% uptick while the ProShares Bitcoin Strategy ETF ($BITO) rose by 1.3%. This uptick may indicate renewed investor interest in cryptocurrencies despite wider market volatility. Examining specific sectors, the Industrial Select Sector SPDR Fund ($XLI) traded uninfluenced, while the Vanguard Industrials Index Fund ($VIS) saw a minor decline of 0.3%.
On the other hand, iShares US Industrials ETF (IYJ) was also inactive. In a more surprising development, shares of SFL ($SFL) plummeted by over 10% prior to market opening after the company announced the pricing of its underwritten public offering of 8 million shares at a price of $12.50 each. On the consumer front, the Consumer Staples Select Sector SPDR Fund ($XLP) remained flat, while the Vanguard Consumer Staples Fund ($VDC) was inactive.
Conversely, the Consumer Discretionary Select Sector SPDR Fund ($XLY) experienced a loss of 1.7%, signaling possible fluctuation in consumer confidence and spending. Tesla ($TSLA) faced a steep downfall of over 8% in pre-market trading due to reported declines in Q2 earnings and automotive revenue compared to the previous year, raising concerns around its market performance. In the healthcare sector, the Health Care Select Sector SPDR Fund ($XLV) experienced a mild dip of 0.1%, while the Vanguard Health Care Index Fund ($VHT) enjoyed a rise of 0.7%.
The iShares US Healthcare ETF ($IYH) remained inactive, and the iShares Biotechnology ETF ($IBB) dropped by 0.4%, reflecting mixed performance within the sector. Tenet Healthcare ($THC) shares surged by 5.2% during premarket trading as the company showcased stronger-than-expected Q2 financial results and upgraded its guidance for 2024, which analysts received positively. In the energy sector, while the iShares US Energy ETF ($IYE) remained inactive, the Energy Select Sector SPDR Fund ($XLE) demonstrated an uptick of 0.2%.
New Fortress Energy ($NFE) shares rose by 2.3%, buoyed by the announcement of a completed $700 million loan for its second FLNG unit, showcasing strong financial maneuvers within the company. Within financial markets, the Financial Select Sector SPDR Fund ($XLF) saw a decline of 0.4%. Notably, Direxion Daily Financial Bull 3X Shares ($FAS.US) fell by 1.6%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares ($FAZ), experienced a slight increase of 1.5%. Banco Santander ($SAN.ES) stocks climbed by 2% following the publication of its stronger-than-expected Q2 results, indicating the bank's robustness amid fluctuating market conditions. Technology sector analyses reveal the Technology Select Sector SPDR Fund (XLK) faced a dip of 0.9%, with the iShares US Technology ETF ($IYW) declining by 1.1%.
The iShares Expanded Tech Sector ETF ($IGM.US) also saw a decrease of 0.3%. In the semiconductor space, the SPDR S&P Semiconductor ETF ($XSD) remained flat, while the iShares Semiconductor ETF ($SOXX) dropped by 1.2%. Notably, Texas Instruments ($TXN) stock rose by 1.8% as the company reported results that surpassed forecasts during this Wednesday's premarket activity. In commodities, front-month US West Texas Intermediate crude oil prices increased by 1.2%, reaching $77.86 per barrel on the New York Mercantile Exchange.
Natural gas prices saw a decrease of 2.7% to $2.13 per 1 million British Thermal Units. Notable movements include a 0.8% gain for United States Oil Fund (USO) and a near 4% drop for United States Natural Gas Fund (UNG). Gold futures for December increased by 0.2%, reaching $2,460.10 an ounce on the Comex, while silver futures gained 0.4%, hitting $29.46 per ounce.
SPDR Gold Shares ($GLD) rose by 0.4%, whereas iShares Silver Trust ($SLV) saw a 0.5% increase, reaffirming continued investor interest in precious metals during these uncertain times..