Market Direction: BULLISH alert
issued 6/20/2019
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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 faded into the close and lost 0.6% on Friday, as geopolitical angst and expectations for a smaller Fed rate cut weighed on the broader market. The Nasdaq Composite lost 0.7%, and the Russell 2000 lost 0.5%.
The Dow Jones Industrial Average (-0.3%) fared slightly better, supported by shares of Boeing (BA 377.36, +16.25, +4.5%) after it announced a $4.9 billion charge for its 737 MAX grounding.
Price action for most of the day had been muted until Iran said it seized a British oil tanker and The Wall Street Journal reported that the Fed is signaling a 25-basis points rate cut at the July 30-31 FOMC meeting.
The latter report dampened hopes for a 50-basis points rate cut, which had already been on the decline after a Fed spokesman dialed down comments from NY Fed President Williams that were perceived as dovish yesterday. In turn, the fed-funds sensitive 2-yr yield increased four basis points to 1.82%, while the 10-yr yield increased one basis point to 2.05%. The U.S. Dollar Index rose 0.4% to 97.15.
According to the CME FedWatch Tool, the implied likelihood for the quarter-point cut climbed to 77.5% from 39.8% yesterday.
Heightened tensions in the Middle East did spur a rebound in oil prices ($55.66/bbl, +$0.47, +0.9%), which contributed to the outperformance of the S&P 500 energy sector (+0.5%). Still, losses in eight of the 11 S&P 500 sectors, including the real estate (-1.7%), utilities (-1.5%), and communication services (-1.3%) sectors, dragged on the broader market.
Transport stocks outperformed on Friday after KC Southern (KSU 123.43, +5.44, +4.6%) reported better-than-expected earnings results. The Dow Jones Transportation Average advanced 0.6% to cut its weekly loss to just 0.3%.
In other earnings news, Dow components Microsoft (MSFT 136.62, +0.20, +0.2%) and American Express (AXP 124.82, -3.58, -2.8%) beat earnings estimates, but the price action in shares was disappointing. MSFT was up as much as 3.1% today but faded alongside the broader market during the afternoon.
Treasuries started the day in the red, but a daylong rebound lifted all tenors into the green by the close. The 10-yr yield dipped one basis point to 2.11%. The U.S. Dollar Index returned into the neighborhood of its 200-day moving average (96.77), sliding 0.3% to 96.81.
$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.
The market direction weekly closing numbers for the indexes this week compared to the initial BULLISH recommendation closing numbers:
Stock Market Closing Numbers
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compared to Recommendation Numbers
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6/20/2019
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7/19/2019
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Difference
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26,753.20
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27,154.20
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401.00
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8,051.34
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8,146.49
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95.15
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2,954.18
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2,976.61
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22.43
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