Market Direction: BEARISH alert
issued 8/14/2019
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 stock market finished decisively higher on this options expiration Friday. A buy-the-dip mindset helped boost the S&P 500 (+1.4%), Dow Jones Industrial Average (+1.2%), and Nasdaq Composite (+1.7%) each over 1.0%. The Russell 2000 increased 2.2%.
The market jumped out of the gate amid several positive considerations that helped investors return to equities after a volatile week. Some of those included an understanding that the U.S. consumer is still in good shape, President Trump declaring that he will have a call with President Xi soon (no specific date was mentioned), and other governments continuing to signal efforts to stimulate growth.
Given the 3% stock market sell-off earlier this week, and the lack of bad news today, conditions may have also been primed for a bounce. All 11 S&P 500 sectors finished higher with most of the leadership concentrated among the cyclical sectors, which were hit the hardest this week.
Nine sectors increased by at least 1.0%, including near 2.0% gains in the industrials (+1.9%), information technology (+1.9%), and financials (+1.9%) sectors. The real estate (+0.6%) and utilities (+0.4%) sectors rose modestly.
Industrial components Deere & Company (DE 149.23, +5.52, +3.8%) and General Electric (GE 8.79, +0.78, +9.7%) greatly benefited from a buy-the-dip mindset. Deere missed earnings estimates and lowered its full-year guidance, which sent shares down nearly 4% prior to the open, but shares still finished higher. GE, meanwhile, bounced back from yesterday's 11% drop that followed allegations of accounting fraud.
High-beta groups like the Dow Jones Transportation Average (+2.1%), the Philadelphia Semiconductor Index (+2.8%), and the iShares Nasdaq Biotechnology ETF (IBB 104.97, +2.29, +2.2%) each advanced over 2%. The semiconductor space was boosted by a positive reaction to better-than-expected earnings results from NVIDIA (NVDA 159.56, +10.79, +7.3%). Despite the rally in equities, demand for U.S. Treasuries held firm amid lingering growth concerns. The 2-yr yield declined two basis points to 1.47%, and the 10-yr yield increased one basis point to 1.54%. The U.S. Dollar Index was unchanged at 98.18. WTI crude increased 0.5% to $54.89/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
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compared to Recommendation Numbers
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8/14/2019
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8/16/2019
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Difference
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25,479.40
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25,886.01
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406.61
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7,773.94
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7,895.99
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122.05
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2,840.60
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2,888.68
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48.08
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