Craig Johnson’s

Market Commentary

Monday, July 7, 2014

Financial Markets Recap for Last Week:

·       The shortened holiday trading led to a low volume week.

·       The lighter trading didn’t affect the upwards progression of stock and market indices. The Dow Jones Industrial Average and the S&P 500 recorded new all-time highs last week.

·       The Nasdaq Composite recorded new post 2000 highs, while the Russell 2000 exceeded its March 4 high and traded at a new all-time high.

·       Last week’s huge number of economic reports were generally in line or better than estimates. This reinforces the likelihood that the surveys being released from the Federal Reserve showing stronger growth for the economy are accurate.

·       Oil prices continued to tumble after their rapid rise due to events in Ukraine and Iraq. Oil, which traded over $107 a barrel recently, closed last week under $104.

·       Gold ran up to just a tad below the resistance level at $1335.70 an ounce before dropping back and closing just above $1321.

·       Gold gained for the fifth consecutive week.

·       The yield on the ten year U.S. Treasury note rose last week after breaking through resistance at 2.66%. It closed last week just below the resistance level at 2.648%.

Financial Markets Health and Outlook:

·       Trading this week will be the first full week of trading in the third quarter.

·       The stock market outlook remains moderately favorable as we pass the mid-point of the year. (Repeated from last week).

·       The stock market has been in an overbought situation for quite some time. The market has successfully moved sideways rather than correcting with sharp sell-offs. Market sectors have rotated to leadership rolls providing the market the resilience to press higher.

·       The stock market remains on track to move higher before any significant selling sets in.

·       Second quarter earnings season gets underway next week. Only a few companies will report. In the coming weeks the number of companies reporting will ramp up dramatically. 

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.