Weekly Closing Numbers: Geopolitical issues are the headlines

Market Direction: BEARISH alert issued 5/23/2019

What is the current stock market direction? 

Vote BULLISH (Up) or BEARISH (Down) in the upper right side bar, the current stock market direction weekly closing numbers. Leave a comment. Now for the news…

The economy

The S&P 500 declined 0.2% on Friday, pulled lower by weakness in the semiconductor space after Broadcom (AVGO 265.93, -15.68, -5.6%) warned of a slowdown in demand. For the week, the benchmark index finished higher by 0.5%.

The Dow Jones Industrial Average (-0.1%), the Nasdaq Composite (-0.5%), and the Russell 2000 (-0.9%) finished with weekly gains of 0.4%, 0.7%, and 0.5%, respectively.

Broadcom cited U.S.-China trade uncertainty and export restrictions on Huawei Technologies for the disappointing outlook. In addition, Broadcom missed revenue estimates and lowered its FY19 revenue guidance below consensus. The Philadelphia Semiconductor Index lost 2.6% and many of its components dragged on the S&P 500 information technology sector (-0.8%).

Global growth worries lingered after China reporting the slowest growth rate for industrial production in 17 years in May, which contributed to the underperformance in the S&P 500 energy (-0.7%), materials (-0.5%), and industrials (-0.4%) sectors.

Still, investors were placated with economic data that showed the U.S. economy is still in relatively decent footing. Retail sales for May increased 0.5% (Briefing.com consensus 0.7%) after increasing an upwardly revised 0.3% (from -0.2%) in April. Industrial production increased 0.4% in May (Briefing.com consensus 0.2%) after declining 0.4% in April.

Stocks also recouped a good chunk of their losses in late afternoon action as the S&P 500 briefly climbed into positive territory. The comeback effort was led by the utilities (+1.0%), communication services (+0.4%), and real estate (+0.3%) sectors. Facebook (FB 181.33, +3.86) was a notable standout, rising 2.2% after RBC Capital Markets provided some positive analysis on Facebook's cryptocurrency plans.

U.S. Treasuries finished mixed. The 2-yr yield increased two basis points to 1.84%, and the 10-yr yield finished unchanged at 2.09%. The U.S. Dollar Index rose 0.6% to 97.57 to reclaim its 50-day moving average (97.46). WTI crude increased 0.3% to $52.54/bbl.

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The market direction weekly closing numbers for the indexes this week compared to the initial BEARISH recommendation closing numbers:

Stock Market Closing Numbers
compared to Recommendation Numbers
	5/23/2019	6/14/2019	Difference
Dow Jones	25,490.50	26,089.61	599.11
Nasdaq	7,628.28	7,796.66	168.38
S&P 500	2,822.24	2,886.98	64.74

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