Craig Johnson’s

Stock Market Summary

Monday, August 14, 2017

  • The stock market had a difficult week with the major indices all finishing more than 1% lower. The Russell 2000, representing the small capitalization area of the market, was impacted the most and declined over 2.5%.
  • Between earnings reports, a small number of economic releases and Summer (typically a quiet time of year, especially the month of August), the market was susceptible to selling.
  • Last week’s decline impacted nearly all groups. Individual stocks and sectors, which are more volatile than the major indices, suffered far more than the indices indicated.
  • The S&P 500 actually declined more than 1% on Thursday. It was only the third time that has occurred in 2017, an event that typically occurs far more frequently during a year.
  • The consumer staples sector (a defensive sector) was the best performing sector with its small gain and the only one that was positive for the week. Basic Materials, Energy, Financial and REITs were very weak with Financials being the weakest sector. Each declined more than 2% for the week.
  • Due to the time of the year: August – September, the level of weakness in the general market and earnings season winding down, caution in the near term is probably warranted. If like previous declines there is little or no follow through, which is just as likely to occur as a further decline, all stock market trends after the consolidation should be moving higher.
  • For now, the short term trend is lower, while intermediate and long term trends are higher. 

Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, 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.