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Last
Week Review: Stocks were mixed for the holiday-shortened
week, with defensive sectors such as healthcare and utilities leading gainers,
while energy and financials led decliners. The equity market essentially
shrugged off a disappointing May jobs report, which sent a negative signal for
the U.S. economy but drove optimism the Federal Reserve could wait longer
before pursuing any short-term interest rate hike.
As always, the Fed will continue to state that any
action they take will be consistent with improving employment and inflation
data, so the weak June payroll report could
derail their July plans just as quickly as the May report deflated expectations
for June.
How the market finished last week, the S&P 500 flat
0.0%, the Nasdaq up 0.2%, and the Dow down 0.4%.
This Week: Upside technical resistance
continues to hold back equities from reaching a new high, but downside risks
have greatly subsided, despite the weak May payroll report.
While
next week is a very light week from an economic standpoint, Janet Yellen is
scheduled to speak on Monday (6/6) at 2:00 PM ET. If history is any guide, the
markets will move higher afterwards as it has done about 2/3rds of the time.
With
Chair Yellen speaking on Monday, the S&P 500 battling upside technical
resistance, and widely dispersed sentiment from the indicators, a logical
outlook for next week is a bullish overall. Like last week, not necessarily
volatile from the perspective of the VIX, but volatile with regard to the size
of the intra-day swings.
Economic Calendar: Productivity and Cost (6/7), JOLTS
(6/8), Jobless Claims (6/9), Consumer Sentiment (6/10)
Some of the major earnings announcements on deck: PLAY,
LULU, MFRM, PAY, VRX.
Related Link: http://www.stockmarket-direction.com/
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