Weekly Closing Numbers: Fast Start for Bullish Alert

 

Market Direction: BULLISH alert issued 10/8/2020

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

Technology stocks performed well this week but not as well as many small cap/value/cyclical stocks, as investors felt more confident in a recovery. The Russell 2000 rallied 6.4%, comfortably outpacing the S&P 500 (+3.8%), Nasdaq Composite (+4.6%), and Dow Jones Industrial Average (+3.3%).

Highlighting the week's biggest stories: President Trump essentially recovered from the coronavirus, removing some political uncertainty. The White House was reportedly drafting a $1.8 trillion stimulus bill, bolstering relief expectations. Eli Lilly (LLY) and Regeneron (REGN) requested emergency use authorization for their COVID-19 antibody treatments, potentially aiding consumer sentiment.

The market rose four of the five days, and every sector in the S&P 500 ended the week in positive territory. The materials (+5.1%), energy (+5.0%), information technology (+4.6%), and utilities (+4.6%) sectors advanced more than 4.0%, while the real estate sector underperformed with a 1.4% gain. 

The semiconductor space was boosted by Taiwan Semiconductor (TSM) reporting strong revenue growth in September, NXP Semi (NXP) raising Q3 revenue guidance above consensus, and news that Xilinx (XLNX) is in talks to be acquired by AMD (AMD) for $30 billion. The Philadelphia Semiconductor Index surged 8.0%. 

The one day the market closed lower was when President Trump said he called off stimulus negotiations until after the election. He later clarified that he still wanted stimulus but in the form of standalone bills for airlines, small businesses, and households -- this was ultimately superseded by the $1.8 trillion news at the end of the week. 

U.S. Treasuries declined amid the risk-on mindset among investors, pushing yields higher in a curve-steepening trade. The 2-yr yield increased three basis points to 0.16%, and the 10-yr yield increased eight basis points to 0.78%. The U.S. Dollar Index fell 0.9% to 93.06. WTI crude futures rose 9.9%, or $3.59, to $40.64/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. 

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

Stock Market Closing Numbers
compared to Recommendation Numbers
	10/8/2020	10/9/2020	Difference
Dow Jones	28,425.51	28,586.90	161.39
Nasdaq	11,364.60	11,579.94	158.96
S&P 500	3,446.83	3,477.13	30.30

Register at: http://www.stockmarket-direction.com/