Before the US market opened, the Shanghai Composite had posted a 1.76% gain and major European indexes were having a good session. The pre-market news of slightly higher-than-expected weekly jobless claims was countered by strong July Retail Sales report. The S&P 500 faded a bit at the open while digesting the news and hit its -0.37% intraday low shortly thereafter. It then recovered to a narrow trading range just below its 0.33% intraday high at the end of the lunch break. Some selling in the final hour pushed the index to its modest loss of -0.13%.
Tomorrow should probe an interesting day for economic news. The Producer Price Index will give us some clues about the recent deflationary drift, and the July Industrial Production numbers will an important gauge of whether this key basket of indicators can post another month of expansion after five consecutive months of contraction (more on that here).
The yield on the 10-year note closed the day at 2.19%, up 5 bps from yesterday's close.
Here is a snapshot of past five sessions.
Today's light loss came on relatively low volume.
A Perspective on Drawdowns
Here's a snapshot of selloffs since the 2009 trough.
For a longer-term perspective, here is a charts base on daily closes since the all-time high prior to the Great Recession.
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