The S&P 500 oscillates between small gains and losses above 4,600 amid an indecisive start to the week

• The S&P 500 has oscillated between gains and losses on the first day of the week within a range of 4675-4695.
• The Nasdaq 100 underperforms amid rising long-term returns in the US.

The S&P 500 It has seen swinging trade so far this Monday, trading within a 20 point range at 4675-4695 amid an indecisive start to the week. Currently, the index is roughly in the midpoint of this range, just below 4685, which means it is trading flat on the day. The Nasdaq started the session in the green, climbing as high as 16,250 at one point, but has since slid back into negative territory, and is currently trading around 16,150, down about 0.3% on the day. So far, the 16,100 level that coincides with last Thursday’s highs has offered decent support.

Weighing in on the Nasdaq 100 index there has been a surge in long-term US bond yields. This is because so-called growth stocks, the valuation of which is disproportionately dependent on expectations of future earnings growth rather than actual reported figures, are a heavy burden on the Nasdaq 100. As interest rates rise to In the long run, this increases the opportunity cost of betting on profit growth. A further drop in Tesla’s stock price amid a Twitter storm from CEO Elon Musk that saw him lash out at left-wing American politician Bernie Sanders (who called for higher taxes on billionaires) probably didn’t help. Musk sarcastically asked Sanders if he should sell more stock (after publicly criticizing / insulting him). Shares of Tesla fell another 5.0% on Monday and were back below $ 1,000, having fallen more than 15% last week when Musk dumped shares.

The Dow is currently trading virtually flat in the session as the S&P 500. A 5.0% rise in Boeing’s share price amid reports that the Saudis are in talks with the company about an order for wide-body jets not has managed to give the index a significant high value. In terms of the S&P 500 GICS sectors, banks are outperforming the index and are up 0.2% as long-term returns increase. Materials are underperforming the index, down 0.5%, as traders cite concerns about metal demand amid more evidence during Monday’s Asian session that growth in Chinese real estate continues to slow.

Aside from the knock-on impact that higher long-term returns had on growth stocks after they rallied after the robust New York Fed survey, the data has been ignored. But it bodes well for the upcoming US PMI surveys and concrete activity data for November later. The shares will be much more in tune with Tuesday’s October US retail sales report. Investors will also be on the lookout for the “unofficial end” of the earnings season, as traditional retailers Walmart, Target, Home Depot and Macy’s report this week. Walmart goes up first on Tuesday. Investors look forward to finishing off what has been an excellent earnings season so far.