Stock Market Summary
Monday, October 17, 2016
- Further selling from the prior week sent the major stock market indices down for the week. The Nasdaq Composite and the Russell 2000 felt the brunt of the selling last week, while the S&P 500 and the Dow Jones Industrials fared a little better.
- Not only was it a growth versus defensive reason for the variance between the indices, but the healthcare sector being down nearly 3% for the week had a huge impact. Large and small capitalization biotechnology indices, reflecting the pain their components suffered, declined more than 6% for the week.
- Sectors that were strong included utilities and real estate investment trusts.
- The S&P 500 Index, most commonly used as a benchmark for the status of the stock market has been locked in a trading range since hitting an all-time high in mid-August. The range area is 2119-2194. The S&P 500 closed Friday near 2133. The 20 week moving average has been providing rising support over the past five weeks.
- Earnings season is ramping up, but still another week or two before the surge of reports begin. The short, intermediate and long term trends are all 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.