US Closing Update US Indices on Monday's close: SPX: (-0.78%),...

US Closing Update

US Indices on Monday's close: SPX: (-0.78%), NDX: (-1.33%), Dow: (-0.84%) and RUT: (-0.63%)

ES and SPX reversed Friday's gaps and the ESH19 contract is down a bit in the eth session after it closed at 2642 and SPX at 2643.85 which is just on the half way retracement of the major downtrend.

February Gold GCG19 settled at $1303.10/oz and is currently up in electronic trade. Two influences for the metal this week will be the FOMC statement and the US jobs report on Friday with its potential impact on the USD index. Oil was down today with CLH19 settling at 51.99/bbl or (-3.1%) on overnight China data and CAT earnings.

Market Internals

NYSE A-D lines: -297. NYSE breadth: -1.51:1 and NASD breadth: -1.64:1. NYSE cumulative TICK: relatively flat along the neutral line but rising from 12:15 ET into the close. TRIN: 1.23 -- moderate selling pressure.
NYSE Closing Auction:-829M to sell at the reveal at 15:45 but a flip at the close to finish at +82M to buy. SPX volume: 2.284B. SPX composite volume: -8.55%. NYSE composite volume: -4.90% and NYSE total volume: -4.97%. Implied Volatility: VIX: 18.87 or +8.32%, VXG19 : 19.15 or +0.13% and VXH19 : 19.14 or +0.08%.

Debt
Treasury action was light today but spurred on by 2 and 5-year auctions that both saw decent demand: a $40B 2-year note sale with a high yield of 2.600% (issued at 2.606%) vs a 12 auction average of 2.561% followed by a $41B 5-year note sale with a high yield of 2.576% (issued at 2.582%) vs a 12 auction average of 2.768%.

The 2-year (-2 bps to 2.58%) to 10-year (-1 bp to 2.74%) spread is now 16 bps while the 2-year to 30-year (unchanged at 3.06%) is still 48 bps.

Old News: The Congressional Budget Office reports that the government shutdown took $8B out of the US economy and that $3B may not be recoverable. Also they add some dour news about the US debt levels.

New News: US Department of Justice files for extradition of Huawei CFO from Canada and charges Huawei with IP theft. Also, the Speaker of the House has invited the President to give his State of the Union Address on 5 February and he has accepted. Fun times will be had by all. Yes, @ammie that's a very good point