Stock Market Summary
Monday, January 9, 2017
- The stock market started the year out on a strong note. Some of the major market indices gained 1% for the week, while others gained more.
- Two industry groups that had been laggards last year, biotechnology and computer technology had a big week. Large capitalization biotech was up just under 6%, while multi-capitalization biotech gained about 7% for the week. Healthcare, which had been the worst sector last year, had a strong week with a lot of that gain coming from pharmaceuticals and biotechnology stocks. Computer technology was up over 2%.
- The Nasdaq 100 Index, which represents the 100 largest market capitalization non-financial stocks traded on Nasdaq, struggled last year but was up just over 3% for the week.
- Investor sentiment has improved dramatically from the low points hit last year, but still remains a distance from getting “too positive” on the market. Enough doubters remain, keeping market sentiment from getting too over-heated.
- New highs reached last week by many of the market indices is usually viewed as a good sign for a market that wants to move substantially higher.
- The stock market remains susceptible to small pullbacks as it climbs higher. Those consolidations could give the market more staying power and add to the likelihood of higher prices.
- The short, intermediate and long term trends are higher.
- The Weekly Financial Market Summary will be released on Thursdays this year instead of Tuesdays. The summary will include comments about the stock market in addition to comments about other financial markets.
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.