Financial Markets Summary
Thursday, January 12, 2017
- The stock market has remained in a sideways consolidation pattern so far this week. The S&P 500 and Dow Jones Industrial are down slightly on the week, while the Russell 2000 (small market capitalization representative index) is slightly higher. The one index that keeps powering ahead and has now extended its streak to 5 consecutive all-time high closes is the Nasdaq Composite.
- Strength in basic material stocks and technology stocks this week has offset much of the weakness in energy, REIT’s and staples.
- After moving above $55 a barrel last week, oil dropped below $51 before bouncing yesterday and closing above $52 a barrel. Good support resides right below $50 a barrel.
- In November, the U.S. dollar broke upwards through the multi-year range that had contained it for so long. Since then nearly all of the trading has stayed above that breakout point.
- After hitting a near term low in December, gold has enjoyed a solid bounce since then. However, strong downwards resistance above the current price will make it quite a struggle for gold to get above $1240 an ounce. It closed yesterday near $1191.
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.