Stock Market Summary
Monday, November 23, 2015
- Stocks roared back last week from the previous week’s pullback and the major indices are now right back knocking on the door of the November 6 highs.
- The strongest groups for the week were consumer discretionary, technology and retail. The first two groups are leading the market higher and are close to recording all-time highs, while retail bounced from the sharp selling that it has been experiencing since mid-July.
- Earnings season is winding down and generally the reports were good enough to keep most traders and investors positive. There were a number of bad reports or much lower guidance provided by companies, which sent those company’s shares sharply lower. Some fell by 10-20% or even more between the release of the report and the market opening.
- This week is a holiday shortened trading week with the stock market closed on Thursday for Thanksgiving and open for a half day of trading on Friday. Typically, the half day after Thanksgiving sports the lightest trading day volume of the year.
- There will be an abundance of economic reports between Monday and Wednesday, but the one that will catch the most interest is Tuesday’s report on the first revision to third quarter Gross Domestic Product (GDP). The release will solidify many opinions on the strength or lack of strength for the economy.
- The resiliency of the stock market after the recent two week pullback provides a lot of evidence that the next few weeks are likely to see all-time highs or a challenge to the previous highs for the stock market.
- The stock market’s short-term, 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.