Craig Johnson’s

Stock Market Summary

Monday, October 16, 2017

  • The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all had gains for the week of less than 1%. The Russell 2000 declined less than 1%.
  • The Russell 2000, after its explosive move higher since mid-August, has been in a sideways trading pattern for the past week and a half. The index appears to be consolidating its advance so far through time rather than price.
  • After moving sideways for a little more than two months, the Nasdaq 100 Index broke to all-time highs during the past two weeks. That strength is important to the market and the sustainability of the advance as many of the market leaders of the past year or so are components of the Nasdaq 100.
  • The large money center banks reported their earnings at the end of the week mostly in line with estimates. The pace of the earnings season will continue to increase from here with the number of reports being released reaching their peak the last full week of October and into the first week of November.
  • REITs, Consumer Staples (mostly due to Wal-Mart’s near 10% gain for the week) and Utilities were the strongest sectors.
  • The Financial sector was the weakest for the week. Sector weakness could also be found in the Consumer Discretionary and Healthcare areas.
  • The market, as measured by the S&P 500, remains susceptible to a mild pullback of 3 – 5% from intraday high to intraday low at any time as the market has become extended.
  • The short term, intermediate and long term trends are higher 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.

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