Stock Market Summary
Monday, August 10, 2015
Stock Market Summary:
- Selling pressure dominated the stock market last week. The major indices dropped well over 1%. The Dow Jones Industrial Average has dropped for seven consecutive trading days and is down a bit over 2.5% for the year to date. The S&P 500, Nasdaq Composite and Russell 2000 are positive year to date, with the Nasdaq Composite up about 6.5% year to date.
- The general weakness in the market seemed to be exasperated by the massive number of earnings reports being released last week. The number of earnings reports will be tailing off quite significantly this week.
- The broad market is in a corrective phase, but so far the selling pressure hasn’t been able to amount to anything more than that. The S&P 500 found support for the third time in the last 25 trading days at the 200 day moving average.
- The media group which has been a leading group this year was hit especially hard last week with many of its components dropping nearly 10% for the week and others even more. The changing dynamics in the cable industry generated worry and concerns among investors in how they should be projecting growth in these stocks. Biotechnology stocks, also leaders this year joined with other healthcare stocks in experiencing some sharp downward moves last week.
- The S&P 500 has been trading in a tight trading range since early February. Currently that range which had narrowed recently to 2070 – 2130 is back to the longer term range of 2040 – 2135. The index closed above 2077 on Friday. This sideways corrective behavior is one of the longest in a number of years, yet the S&P 500 is down less than 2.7% from its all-time high.
- The resilience of the stock market has been and remains impressive. Last week’s selling didn’t seem to do any serious damage leaving the intermediate market bias positive for the stock market.
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.