Stock Market Summary
Monday, February 2, 2015
Stocks remained volatile last week. The Dow Jones Industrial Average experienced triple digit closes on Tuesday, Wednesday, Thursday and Friday. Three of those days were negative, only Thursday was higher.
- The major market indices experienced declines of more than 2% for the week and negative returns for the month.
- January’s decline follows a decline in the market indices in December. Back to back monthly declines haven’t occurred for either the S&P 500 or the Dow Jones Industrial Average since 2012. The Nasdaq Composite and Russell 2000 did experience monthly declines in March and April of last year. The last time any of them had three consecutive monthly declines was in 2011.
- The decline that has taken place so far continues to look like a consolidation or correction within a bigger uptrend. The major indices are down by only 4 – 6% from their highs to their lows, which is within normal pullback parameters.
- Earnings reports and outlooks dominated last week’s market news. During this week and next the high volume of reports will continue. The reports so far have been a little better than just okay, but the strength of the U.S. dollar has been taking a bite out of the multinational companies’ fourth quarter earnings.
- The intermediate (weekly to monthly) market bias remains positive for the stock market.
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.