Craig Johnson’s

Stock Market Summary

Monday, July 10, 2017

  • As the third quarter began last week, many institutions waited for Friday’s release of the June employment report to motivate them into action on what appears to be an increased allocation to stocks.
  • The employment report was very strong generating renewed enthusiasm into many of the growth sectors of the stock market.
  • Major market indices that had been negative or flat for the week going into Friday’s trading rallied to finish the week positive to flat.
  • Other financial markets have also been experiencing significant movement over the past few weeks. The yield on the ten year U.S. Treasury note hit a low of 2.10% in the middle of June, but has moved sharply higher during the past two weeks closing just below 2.40% on Friday.
  • Oil prices, which had rallied to a high at $47.40 a barrel the past few weeks from the recent low, dropped to low at $43.80 on Friday.  It eventually closed near $44.30 a barrel.
  • Earnings from the second quarter will begin to be released as earnings season gets underway with the reports this week being dominated by the money center banks. The largest number of company reports will be released during the last week of July.
  • The Financial sector, after trading sideways since February, has found what appears to be the likelihood of sustainable strength to not only record new highs, but possibly move higher for an extended period of time.
  • Healthcare and Industrials are other sectors that are becoming leaders. Technology, which had been the leader for quite some time, has been consolidating for the past month, but was very strong on Friday.
  • The Financial sector was the best performer last week with the Energy sector being the worst.
  • The stock market’s short, intermediate and long term trends are higher.

 


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.

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