Craig Johnson’s

Stock Market Summary

Monday, February 5, 2018

  • A combination of an extended stock market, which had moved higher for 2018 without a pullback, and many of the largest market capitalization stocks reporting their earnings last week halted the upwards path the 2018 rally had been on.
  • The decline last week blossomed enough to make the normal pullback for the S&P 500 of 3 – 5% for an ongoing rally come into effect. The S&P 500 from the previous Friday’s intraday all-time high to the intraday low this past Friday has recorded a decline of 3.9%.
  • The Nasdaq Composite declined 3.5% from intraday high to intraday low. The Russell 2000, which normally can drop 5 – 7% in a normal pullback, has declined 4.2%.
  • Last week also ended a streak of 49 consecutive closes for the S&P 500 within 1% of the all-time high.
  • Earnings season has been underway with February offering the greatest number of earnings reports being released.
  • The market sectors all declined last week with the Utilities dropping just near 2.3% and the REIT sector dropping 2.5% being the best performing sectors.
  • The Energy sector experienced a huge drop last week declining 6.5% and the Materials sector declined 5.7% representing the two worst performing sectors.
  • The stock market is in one of the seasonally weakest time periods of the year, which typically runs during the last week of January and the first two weeks of February.
  • The short term trend is neutral to down. Intermediate and long term trends remain higher for the stock market. 

Sources: bankrate.com, bloomberg.com, Dow Jones News, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, 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 nota guarantee of future results.

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