Craig Johnson’s

Stock Market Summary

Monday, June 19, 2017

  • The stock market and the major market indices finished mixed last week. The Dow Jones Industrial Average was the strongest benefitting from the strength in the industrials such as GE, Boeing and Caterpillar.
  • The Nasdaq Composite has finished lower for two consecutive weeks. The Russell 2000 was lower last week, while the S&P 500 was fractionally higher. The Dow Jones Industrial Average extended its advance to four consecutive weeks hitting an all-time high on Wednesday.
  • Friday was quadruple witching expiration. This occurs quarterly when stock options, index options, stock futures and index futures expire at the same time. This coupled with the results of the Federal Open Market Committee meeting had many thinking that the market would have been extremely volatile last week, but that was not the case. The market as represented by the S&P 500 varied just a tad over 1% from intraweek high to intraweek low.
  • The recent sideways trading in the overall market tends to mask group rotation which occurs while the market is consolidating. Technology and semiconductors, which had become extended, pulled back sharply over the past two weeks as industrials were showing strength.
  • Basic Materials, staples and technology were the weakest sectors last week. Industrials, utilities and REITs were the strongest sectors.
  • Further housing data will be released this week. Existing home sales and new home sales for May will be announced Wednesday and Friday. These follow last Friday’s release of disappointing May housing starts and building permits. The housing sector has been a bright spot for the economy, while consumer spending has looked tired.
  • The stock market’s 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.

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