Market Direction: BULLISH alert
issued 11/10/2016
The
Dow industrials on Wednesday closed at the lowest level of 2017, marking a
fourth straight day in the red for the blue-chip gauge, but the broader stock
market managed modest gains.
The
Dow Jones Industrial Average DJIA, -0.11% traded within a 89-point range, and
finished down 22.05 points, or 0.1%, at 19,804.72, its lowest close of 2017.
The
S&P 500 index SPX, +0.18% closed up 4 points, or 0.2%, at
2,271.89, with a downdraft in telecom shares capping gains in the banking
sector.
Financial
stocks have led a torrid postelection rally that took the Dow within a hair’s
breadth of psychologically milestone of 20,000. But they have stalled along
with the rest of the equity market.
Meanwhile,
the Nasdaq Composite Index COMP, +0.31% finished up 16.93 points, or 0.3%,
at 5,555.65.
Wall
Street trading over the past several days has been subdued as investors await
signs that the stock-market rally that followed President-elect Donald Trump’s
November election victory, supported by his campaign promises to increase
fiscal spending, cut taxes and roll back regulations, is based in reality and
underpinned by solid corporate quarterly results.
Mike
Antonelli, an equity sales trader at R.W. Baird & Co., said global stocks
would likely remain placid until investors have a better picture of the
fourth-quarter earnings environment and companies’ outlooks for 2017, as well
as Trump’s plans. Trump will be sworn in to office on Friday.
The
bulk of S&P 500 firms will release their earnings in the coming weeks.
Retail
shares have been in focus in recent weeks, suffering on reports of tepid
holiday sales. That news sparked a selloff that spread throughout the sector.
“The
story coming out of retail hasn’t been good,” said Mohannad Aama, managing
director at Beam Capital Asset Management, adding that “individual stories”
will likely continue to influence the broader sector.
On
Wednesday, the dollar recovered from Trump’s comments on Tuesday, who said a
strong dollar can harm the U.S. economy. The U.S. Dollar index DXY, +0.09% rose 0.9% to 101.26. The index
fell 0.9% Tuesday, but added to its rebound after Fed Chairwoman Janet Yellen
said she expects rate hikes a few times a year until the end of
2019.
Economic
docket: On the economic front, the consumer-price index, a
widely watched gauge of inflationary pressure, showed price growth accelerated in 2016 at the fastest pace since
2011.
In
December, the index rose 0.3%. Excluding the volatile food and energy
categories, prices rose 0.2%. The reading was in line with investor
expectations and had little impact on stock futures.
U.S.
industrial output accelerated last month at its strongest pace in two years.
The
housing-market index from the National Association of Homebuilders showed that
builder sentiment slipped in January after notching its highest reading of the business cycle in
December.
Despite the drop, the January number was the
second-highest reading of the cycle.
Inflation
appears to be heating up, according to the Federal Reserve’s so-called Beige Book, which
found that eight out of 12 Fed districts saw modest price increases.
Underscoring retail woes, the report said that retailers struggled to raise
prices.
Other
markets: European markets SXXP, +0.18% finished slightly higher while
the FTSE 100 index UKX, +0.38% finished lower, after logging its
worst loss in six months on Tuesday after Prime Minister Theresa May confirmed
the U.K. will exit the European Union’s single market.
The
British pound GBPUSD, -0.0082% moved lower against the
dollar, trading at $1.2261 from $1.2414 late Tuesday.
Asian
stocks ADOW, -0.48% finished mostly higher, with the Nikkei 225 index
NIK, +1.02% rising 0.4%, lifted by a stronger
Japanese yen.
Oil prices CLH7, +0.73% settled down 2.7% at $51.08 a
barrel, while gold GCG7, -0.93% finished off less than 0.1% at
$1,212.10 an ounce after settling at a two-month high Tuesday on a weaker
dollar and Brexit jitters.
$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, email us. Share with a friend.
The all-time highs since our initial
recommendation to go LONG
this market. Here is how the markets have performed:
Stock Market
Direction Recommendation (11/10/2016)
|
||
Dow
|
up 1,191.75 points a 6.34% gain
|
1/6/17
|
Nasdaq
|
up 355.45 points a 6.82% gain
|
1/10/17
|
S&P 500
|
up 114.62 points a 5.29% gain
|
1/6/17
|
Related Link: http://www.stockmarket-direction.com/
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