Stock Market Summary
Monday, November 14, 2016
- Stocks roared back last week following nine consecutive down days that had occurred during the previous two weeks.
- The Dow Jones Industrial Average gained over 5%, while the S&P 500 and Nasdaq Composite were higher by more than 3% for the week. The Russell 2000 provided the most fireworks gaining just over 10% for the week.
- The laggard of the major indices was the Nasdaq 100. Weakness in semiconductors and computer technology stocks held the index back, ending the week with a gain of just below 2%.
- Financials, industrials, construction related, steel and copper, biotechnology and healthcare stocks all enjoyed a strong week.
- Interest rate sensitive stocks: REIT’s, utilities and generally all fixed income items were lower on the week due to the rapid rise in interest rates. Staples (beverages, food, paper, tobacco, etc.) had a negative week.
- The so-called FANG stocks: Facebook, Amazon, Netflix and Google (Alphabet) all were negative for the week with Netflix down nearly 6%.
- Earnings season continued last week with many of the earnings reports coming from retailers. The number of reports will be diminishing during the next couple of weeks, but there still are many to go.
- The strength of the market quickly turned the short term trend higher early in the week from neutral. The 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.