Craig Johnson’s

Stock Market Summary

Monday, August 1, 2016

  • The stock market remains strong. The strength being provided by the growth sector of the market and the smaller capitalization stocks is providing a new avenue of intensity for the stock market. Typically, a market led by growth stocks provides a more sustainable and powerful stock market move than one being led by defensive and out of favor stocks.
  • The S&P 500 and the Dow Jones Industrial Average have recorded all-time highs. The Nasdaq Composite and the Russell 2000 which had been quite a distance from accomplishing that feat have narrowed the gap significantly.
  • The Nasdaq Composite reached within 1 point of the December high and 1% of an all-time high last week. The Russell 2000 had been a laggard compared to the other indices for quite some time, but has been moving sharply higher since February. It now is less than 6% from an all-time high, when back in February it had been more than 30% away.
  • Earnings dominated the financial news last week. Last week and this week are two of the most heavily reported weeks during this earnings season. Good reports coming from Amazon, Facebook, Alphabet/Google and others last week left the market with a positive tone despite a mixed economic landscape.
  • A couple of weeks ago the stock market had become slightly extended. A sideways consolidation for the major market indices during the last eleven to 14 trading days has cured most of that. A break out of the consolidations by the various indices would now point to a further rally getting underway.
  • The short, intermediate and long term trends are all higher.  

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, 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.