Stock Market Summary
Monday, March 9, 2015
Stock Market Summary:
- Selling, especially on Friday dropped all of the major indices to weekly losses. The S&P 500 and the Dow Jones Industrial Average extended their consecutive weekly declines to two. The Nasdaq Composite finished lower for the week, but was the best performer of the major indices dropping less than 1% for the week.
- The decline for the S&P 500 from the February 25 high to Friday’s low is just under 2.5%.
- Due to the sharp rise in interest rate yields on the six month and longer maturities since the beginning of February, high dividend yielding stock investments have done poorly. The Dow Jones Utility Average, one of the best performing indices last year (gaining nearly 26%), is down just under 8% in 2015. This negative price movement can also be seen in other high yielding stocks and groups.
- On Friday, the stock market as measured by the S&P 500 marked the sixth anniversary of the 2007-2009 bear market low. It recorded its low on March 6, 2009 at 666.79. The S&P 500 closed Friday at 2071.29 after recording its all-time high on February 25 at 2119.59.
- It was announced that Apple, Inc. (AAPL) will take AT&T’s (T) spot in the Dow Jones Industrial Average (DJIA) following the March 18 market close. As of Friday, AAPL would account for 4.7% of the DJIA weight. The DJIA is price-weighted rather than market-capitalization weighted.
- The stock market had been extended and a pullback or consolidation seemed likely. After last week’s selling the market is back to neutral and while further consolidation is possible near term support is not far off. 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.