Monday, December 2, 2013
Stock Market Recap for Last Week – The stock market showed continued strength last week. The Dow Jones Industrial Average and the S&P 500 extended their string of consecutive weeks higher to eight. The stock market was closed on Thursday for Thanksgiving and was only open for a half day on Friday. This holiday shortened trading produced low volume for the week. We are seeing rotation in some of the individual stock leaders recently. Energy stocks generally had a rough week, but strength in refiners kept the group moving sideways. At the end of the week, Standard and Poor’s stripped the Netherlands of its AAA rating and cut the country's debt to AA+. The ratings agency explained that Holland's growth outlook is not as strong as previously thought. The agency's decision leaves Germany, Luxembourg and Finland as the only nations in the euro zone with a AAA rating.
Current Outlook and Comment – The Dow Jones Industrial Average finished the holiday shortened trading week at 16,086.41, while the S&P 500 closed at 1805.81. As December gets underway it is likely that the bullishness that the stock market has been exuding will continue during the first half of the month. It is still a little early to project, but typically volatility enters the second half of the month as the year comes to a close. The volatility could produce some weakness in the market, as it sets up for what should be a powerful move higher in January. The likely strength will make it wise for investors to remain fully invested in the coming weeks even with the increased volatility.
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.