Stock Market Summary
Monday, January 23, 2017
- The stock market remained in a sideways trading pattern that has existed since the middle of December. It has been six weeks since the S&P 500 had a daily move up or down of more than 1%.
- The recent sideways trading during the past month has been likely due to uncertainty. The uncertainty of a new President about to take office and the tone of the earnings reports. It is always a factor, but this time companies’ guidance and outlooks for 2017 are being given much more weight on whether a company had a good report or not.
- The major market indices finished the week down about half of a percent, but the Russell 2000 Index, which represents the small capitalization universe, was down 1.50%.
- Consumer staples had a good week benefitting from the market uncertainty, while healthcare and financials struggled.
- The focus this week will primarily be earnings. The number of reports will be quite large over the next couple of weeks with technology names being the most visible. The recent strength in technology stocks that was largely absent last year could build further momentum if the reports are solid.
- The stock market is always susceptible to pullbacks, but the charts of many stocks as well as market indices are providing an outlook with a positive bias.
- The short, intermediate and long term trends are higher.
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.