Craig Johnson’s

Stock Market Summary

Monday, November 20, 2017

  • The stock market had a sharp rally on Thursday and erased much of the pullback that had been trying to establish itself. In fact, the Nasdaq Composite, gained 1.30% for the day and recorded an all-time high.
  • For the week, the S&P and the Dow Jones Industrial Average showed a slight loss. The Nasdaq Composite was up about 0.4%, while the Russell 2000 had a gain of over 1%.
  • The Russell 2000 garners a lot of attention from market analysts as it represents the smaller capitalization stocks and gives a good read on the broad market participation that is taking place during a rally. The broader the advance, typically the more sustainable the advance.
  • Many retailers reported earnings during the past two weeks leaving few groups left in the coming weeks to report their earnings. The number of reports, which have declined in the last couple of weeks, will decline more rapidly during the next week or two as earnings season winds down.
  • The Consumer Discretionary sector was the strongest sector. Consumer Staples also had a good week with much of the gain coming from Wal-Mart and Tyson Foods.
  • The Energy sector was by far the weakest sector and declined more than 3% for the week. Questions about demand and increasing supply hurt the exploration and production area. In addition, the $1 trillion Norway Wealth Fund indicated they might significantly scale back their holding in the energy sector sending the whole group’s stock prices down.
  • The stock market appears to have moved itself out of the developing pullback and close to being back into an uptrend. Not completely there yet, but in a much better place then a few days ago as the market enters this holiday week.
  • The stock market will be closed all day on Thursday and open for just the first half of the day on Friday.
  • The short, intermediate and long term trends are higher for the stock market.
 

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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