Stock Market Summary
Monday, February 27, 2017
Stock Market Summary:
- The stock market advance continues. The S&P 500 and the Nasdaq Composite extended their consecutive weekly streaks of higher closes to five. The Russell 2000 which had been higher for four consecutive weeks albeit in a much more restrained advance than the other indices, finished slightly lower last week.
- Earnings season which has dominated the financial news for the past few weeks is winding down quickly. This week there will be some reports being released, but the focus will shift back to the release of economic reports. Some widely followed reports are due out this week such as durable goods, fourth quarter GDP, consumer income, spending reports and the ISM index.
- In contrast to all the talk about higher interest rates, interest rates dropped sharply last week. The U.S. ten year treasury yield dropped on Friday to the lowest level since election week on a weekly closing basis.
- In response to that sharp drop in yields, the utility sector gained nearly 4% for the week. Other sectors that fared well last week were REIT’s, staples and healthcare. The energy sector was the weakest by far, with negative performance also in financials and industrials.
- Technology has remained a leader and has seemed to use the earnings reporting period as a springboard rather than a barrier.
- Group rotation continues to be successful in removing the extendedness that the market has reached at times during this rally. That success has kept the market in a healthy state providing more upside potential.
- 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.