Craig Johnson’s

Stock Market Summary

Monday, October 26, 2015

  • The S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average (DJIA) extended their streak of weekly consecutive gains to four. The Nasdaq Composite gained a bit below 3%, while the S&P 500 and the DJIA gained over 2% for the week.
  • The small capitalization and mid-capitalization areas have struggled since the pullback from the July highs. The Russell 2000 finished the week barely higher. It would be helpful and would likely provide a more sustainable stock market rally if it expands to these groups.
  • The Nasdaq Composite is solidly higher year to date, outperforming the other major indices with a more than 6% gain. The S&P 500 managed to pop back into positive territory year-to-date with nearly a 1% gain, while the DJIA is down about 1% and the Russell 2000 is down over 3%.
  • Last week was a big week for earnings with numerous big name Industrial and Technology stocks reporting. Strong reports by large capitalization stocks were rewarded as institutions rushed to get back into them or add to their existing positions. Negative company reports and firms providing reduced guidance had their stock prices punished during the week.
  • The Biotechnology sector had a tough week, but bounced back a bit on Friday from the week’s earlier losses. Technology stocks had a great week as this sector led the stock market rally. Financials are still not showing the strength which is likely to develop in this group as the rally extends and expands.
  • Earnings season will dominate the news this week and next week, with the largest quantity of reports being released by companies during this two week period.
  • The stock market’s short-term, intermediate and long term trends are higher. 

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, 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.