Craig Johnson’s

Stock Market Summary

Monday, April 4, 2016

  • After a breather the prior week, stocks came roaring back last week. The advance was led by the smaller capitalization stocks.
  • The Dow Jones Industrial Average gained about 1.50% for the week, while the S&P 500 was up 1.72%. The Nasdaq Composite had a good week with a gain of 2.86%, but was dwarfed by the Russell 2000 gaining 3.53%
  • The Russell 2000, which represents smaller capitalization stocks, has been a laggard to the other major indices for the past 6-9 months. The recent outperformance is a good sign for the overall market as it makes the market advance much more sustainable. Last week’s outperformance extends the Russell 2000 outperformance for the entire month of March.
  • Earnings season for the first quarter results gets underway in the next few weeks with the majority of reports coming at the end of April and beginning of May.
  • The short, intermediate and long term trends are all higher. The process of higher highs and higher lows has been underway for over a month now, and is adding support and strength to the stock market.
  • It seems the mix of positive media headlines and large number of institutions that are underweighted towards equities could be a very powerful force for the stock market during the second quarter.  

Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.

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