Market Direction: BULLISH alert
issued 1/10/2019
Are you following the current ALERT? If not, why?
Vote BULLISH (Up) or BEARISH (Down) in the upper right side bar, the current stock market direction. Leave a comment. Now for the news…
The economy
The S&P 500 increased 0.7% on Friday, led by shares of energy and health care companies; meanwhile investors remained optimistic about a U.S.-China trade deal. Friday's gains lifted the benchmark index into positive territory for the week, advancing 0.4%.
The Nasdaq Composite (+0.8%) extended its weekly gain to 0.9%. The Dow Jones Industrial Average (+0.4%) and the Russell 2000 (+0.9%) finished flat for the week.
The S&P 500 energy (+1.8%), health care (+1.4%), and consumer discretionary (+0.9%) sectors outperformed. Conversely, the consumer staples (-0.2%), materials (-0.2%), and real estate (-0.1%) sectors were the lone groups to finish with losses.
Stocks jumped out of the gate, propelled by a Bloomberg report that the U.S. and China are working on a document that lays out the provisions of a trade deal and that such a document could be ready to be signed by Presidents Trump and Xi as early as mid-March. Some new inflows on the first trading day of the month likely also contributed to the positive bias.
The major averages, however, lost steam and fell to session lows following the release of the ISM Manufacturing and Consumer Sentiment reports for February. The reports weren't "bad," but both came in below expectations and provided an excuse to sell an overbought market.
Selling was short-lived, though, as has been the case all year. The S&P 500 sectors staged a steady rebound during the afternoon, allowing the benchmark index to close near session highs and above the 2800 level.
Positive earnings reports from retailers Gap (GPS 29.51, +4.11, +16.2%) and Foot Locker (FL 63.07, +3.55, +6.0%) helped spur gains in the consumer discretionary sector (+0.9%). GAP also announced it will spin off Old Navy as a separate company.
Conversely, Walgreens Boots Alliance (WBA 66.61, -4.58, -6.4%) underperformed after Robert W. Baird cut its price target to $67 from $70. Baird maintained a 'neutral' rating on the stock.
Tesla (TSLA 294.79, -25.09) was a story stock, losing 7.8%, after CEO Elon Musk conceded that the company will not be profitable during the first quarter. The Tesla team also said it will shift sales worldwide to online only. The transition will reduce costs in order to lower the prices of its vehicles, including the Model 3.
U.S. Treasuries closed out the week on a lower note, sending yields higher across the curve. The 2-yr yield increased five basis points to 2.55%, and the 10-yr yield increased four basis points to 2.76%. The U.S. Dollar Index increased 0.3% to 96.46. WTI crude lost 2.5% to $55.81/bbl.
$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, write us. Share with a friend.
By the numbers the weekly closing index numbers compared to the initial BULLISH recommendation closing numbers:
Stock Market Closing Numbers
|
|||
compared to Recommendation Numbers
|
|||
1/10/2019
|
3/1/2019
|
Difference
|
|
24,001.90
|
26,026.32
|
2,024.42
|
|
6,986.07
|
7,595.35
|
609.28
|
|
2,596.64
|
2,803.69
|
207.05
|
|
Register
at: http://www.stockmarket-direction.com/
No comments:
Post a Comment