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US Stock Market Weekly Review Feb. 15 – 19, 2021

US stock market

Last week one of the comments about the US stock market was “Consolidation is likely, and a correction too. With most of the companies have reported earnings and revenue that beat estimates, the question now is what can drive the stock market higher? Profit-taking and concerns about valuation can send stock indices and stocks lower, but what about higher?”.

For the week ending on Friday, February 19, 2021, the major indexes ended mostly lower, although there was a holiday-shortened trading week. The Dow Jones was almost flat, and Nasdaq Composite (COMP) had the biggest losses. Still at record highs for major stock indices, the selling pressure this week was not excessive.

The key highlight for the week was the surge of the 10-yr bond yield to 1.3450%, which is the highest level in almost a year. This yield trend should be monitored for various reasons. The first point is if the yield continues to increase then there could be a shift to money invested from stocks to bonds which are considered safer financial assets and less risky compared to stocks.

Second, a higher bond yield increases the discount rate for the valuation of stocks. And a rise from under 1% for the 10-yr bond yield back in January 2021 to 1.3450% in February 2021 is not a factor to go unnoticed. On the contrary, it has severe implications for the stock market valuation, and also the inflation expectations.

Also, I must mention the fact that there were Congressional hearings related to the recent GameStop (GME) frenzy and stock price manipulation. I have trust in the SEC that it will continue to monitor such unusual trading activities that to my opinion are clear stock price manipulation schemes, which are illegal. I would also expect fines and charges too to be imposed.

Stock market speculation is both legit and aims to large capital gains, to compensate for the risk taken. Stock market manipulation and pump and dump trading schemes are illegal.

What is very important for the path of the US stock market now is that the Q4 earnings for the majority of companies have beat the estimates for EPS and revenues. This is too important and a key fundamental factor that is supportive of the recent all-time high levels for the stock indices. But this also means that plenty of stocks are now overvalued.

Economic News
The Retail Sales were a big positive surprise with a figure of 5.3%, beating the consensus of 1.1%. The Building Permits were also strong coming in at 1.881 M, better than the forecast of 1.678 M. Still the Housing Starts were a miss, with a figure of 1.58 M, lower than the consensus of 1.658 M.

The labor market continues to struggle. Disappointing labor data the previous week was again a key economic metric to monitor. Continuing Jobless Claims came in at 4.494 M, higher than the consensus of 4.413 M, and Initial Jobless Claims came in at 861 K higher than the consensus of 765 K.

The major US stock market indexes closed as follows on Friday February 19, 2021:

• Dow Jones Industrial Average: Close 31494.32, +0.11% for the week, +2.90% Year-to-date (DIA)

• S&P 500 Index: Close 3906.71, -0.71% for the week, +4.01% Year-to-date (SPX)

• Nasdaq Composite Close 13874.46, -1.57% for the week, +7.65%, Year-to-date

• Russell 2000: Close 2266.69, -0.99% for the week, +14.78% Year-to-date (IWM)

Economic events for the week February 22- February 26, 2021:

Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the Chicago Fed National Activity Index, the S&P/Case-Shiller Home Price Indices, New Home Sales, Durable Goods Orders, Gross Domestic Product Annualized(Q4) PREL, Personal Spending, Personal Income, and the Michigan Consumer Sentiment Index.

This article appeared first on TalkMarkets.


US Stock Market Weekly Review February 8 – 12, 2021

US stock market weekly review

A second consecutive week with gains for major US stock indices, although modest this week, with the US stock market near its record highs. Consolidation is likely, and a correction too. With most of the companies having reported earnings and revenue that beat estimates, the question now is what can drive the stock market higher? Profit-taking and concerns about valuation can send stock indices and stocks lower, but what about higher?

For sure the rollout of coronavirus vaccines combined with declining case trends can build momentum for stocks in 2021.

A strong trend that I have mentioned back in late 2020 and is building momentum is small-cap stocks. Mid- and small-caps perform better compared to large-cap stocks, and value investing is another trend worth monitoring in 2021.

Fiscal stimulus though essential to support the economy now has also some negative implications. If a large part of stimulus checks support is directed to buying stocks, then the syndrome of irrational exuberance and wild stock price moves supporting the speculative frenzy may persist. Once this is stopped, logic should return to the stock market. Stocks with good fundamentals at attractive valuation should trade higher and those with unjustified financial key metrics should have a correction.

Key trends to watch are employment, inflation, and consumer confidence. The latter should improve with the rollout of vaccines. And inflation should also pick up with high oil prices.

The best signal that is still a very long prospect to support the economic growth would be the Fed to start increasing gradually the benchmark key rate. It would mean that inflation is picking up, demand for goods and services is also improving, and we know that consumer spending is a cornerstone for high economic growth.

Putting the short squeeze trend aside, short selling is not going to disappear. And speculating trading will also be probably present. Many stocks either go unnoticed or are too hard to get manipulated, and these stocks do not make headlines.

The SPAC mania is worth to be mentioned. Caution is suggested. The excitement in most cases leads to irrational valuations.

Economic News

The Consumer Price Index came in at 1.4%, less than the consensus of 1.5%. Federal Reserve Chairman Jerome Powell mentioned that interest rates will stay at the current low level for quite some time and highlighted the weak labor market growth. He stated, “Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared,”.

The labor market this week showed worse than expected growth. The Continuing Jobless Claims figure of 4.545 M was higher than the consensus of 4.49 M. The Initial Jobless Claims figure of 793 K was also higher than the consensus of 757 K.

The Michigan Consumer Sentiment Index (preliminary) fell to 76.2, well below the consensus of 80.8. Lower personal consumer confidence in economic activity can lead to lower consumer spending and lower economic growth.

The major US stock market indexes closed as follows on Friday February 12, 2021:

• Dow Jones Industrial Average: Close 31458.40, +1.00% for the week, +2.78% Year-to-date

• S&P 500 Index: Close 3934.83 , +1.23% for the week, +4.76% Year-to-date

• Nasdaq Composite Close 14095.47, +1.73% for the week, +9.37%, Year-to-date

• Russell 2000: Close 2289.36 , +2.51% for the week, +15.93% Year-to-date

Economic events for the week February 15- February 20, 2021:

Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the Retail Sales, the FOMC Minutes.

Sources:

https://www.wsj.com/market-data/stocks/us/indexes

https://www.fxstreet.com/economic-calendar

This article titled US Stock Market Weekly Review February 8 – 12, 2021 first appreared on Talkmarkets.


US Stock Market Weekly Review Feb. 1 – 5, 2021

US stock market weekly review

A week with strong gains for the US stock market and a rebound from the previous week’s steep losses, as S&P 500, Nasdaq Composite, and Russell 2000 indexes made record highs. Small-cap stocks outperformed, and all major stock indexes turned positive on a year-to-date basis. The main catalyst was fiscal stimulus plans and vaccine optimism. In the US infection trends have started to improve and there has formed a peak in the daily infections from covid-19.

The oil prices rallied almost 10% and this may cause inflationary pressures. Initial jobless claims declined for the third consecutive week. Still, the non-farm payrolls figure was a weak number.

Last week I wrote “The answer to whether the stock market can continue to move higher at these record highs is hard to answer. Earnings can be a catalyst for a move higher if they beat estimates. But valuation is too stretched, especially for tech stocks.” With new record highs, further volatility in the stock market should be expected.

A short squeeze is nothing new to the stock market. Short selling also has a long history. The absence of major fundamental news stocks that rise too fast too high is strong evidence of stock price manipulation. And this is illegal. A lot of caution is suggested. GME stock crushed almost 81% this week.

Economic News

The ISM Manufacturing PMI was a slight miss with a figure of 58.7 compared to the consensus of 60. The Markit Services PMI figure of 58.3 beat the forecast of 57.5. The Markit PMI Composite figure of 58.7 also beat the forecast of 58. And the ISM Services PMI figure of 58.7 was also stronger than the consensus of 56.8.

The labor market continues to show mixed signs. The Continuing Jobless Claims figure of 4.592 M was better than the consensus of 4.7 M. The Initial Jobless Claims figure of 779 K was also lower than the consensus of 830 K.

The Nonfarm Payrolls figure of 49 K was a miss compared to the consensus of 50 K. The Unemployment Rate fell to 6.3%, better than the forecast of 6.7%.

Overall economic data this week was strong and supportive of faster economic growth.

The major US stock market indexes closed as follows on Friday February 5, 2021:

• Dow Jones Industrial Average: Close 31148.24, +3.89% for the week, +1.77% Year-to-date

• S&P 500 Index: Close 3886.83, +4.65% for the week, +3.48% Year-to-date

•  Nasdaq Composite Close 13856.30, +6.01% for the week, +7.51%, Year-to-date

• Russell 2000: Close 2233.33, +7.70% for the week, +13.09% Year-to-date

Economic events for the week February 8- February 13, 2021:

Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the Consumer Price Index, and the Michigan Consumer Sentiment Index.

This article appeared first on Talkmarkets.


US Stock Market Weekly Review Jan. 18 – Jan. 22, 2021

US stock market

During the first week of the inauguration of President Joe Biden, the US stock market closed higher for the week, with major indices making record closing figures. The Nasdaq Composite Index outperformed and the Dow Jones Industrial Average index underperformed for the week.

With earnings season underway, the stock market will weigh on the fundamentals and the valuation of equities. At least, it should. Irrational stock moves, such as the GameStop Corp. (GME) surging on no apparent news, shows that speculation is apparently related to specific stocks. Therefore, a lot of prudence is suggested for investors.

The answer as to whether the stock market can continue to move higher at these record highs is hard to answer. Earnings can be a catalyst for a move higher, if they beat estimates. But valuation is too stretched, especially for tech stocks.

Economic News

The economic data reported for the week was positive for the US economy. The housing market showed strength. Both Building Permits and Housing Starts came in better-than-expected. The figures for the Building Permits and Housing Starts were 1.709 million and 1.669 million, respectively. The consensus for the Building Permits and Housing Starts were 1.604 million and 1.56 million, respectively.

The weekly initial jobless claims and continuing jobless claims reported were both better-than-expected. The Initial Jobless Claims reported were 900 thousand, lower than the consensus of 910 thousand. The Continuing Jobless Claims reported were 5.054 million, lower than the consensus of 5.4 million.

The Markit Manufacturing PMI beat the estimate of 56.5 with a figure of 59.1. The Services Purchasing Managers Index (PMI) was also better-than-expected with a figure of 57.5, compared to the consensus of 53.6. Improved business conditions in the manufacturing and services sector serves as positive news for economic growth.

For the week of Jan. 18-Jan. 22, 2021, the major US stock market indexes closed as follows on Friday, Jan. 22, 2021:

Dow Jones Industrial Average: Closed at 30996.98, +0.59% for the week, and +1.28% Year-to-date.
S&P 500 Index: Closed at 3841.47, +1.94% for the week, and +2.27% Year-to-date.
Nasdaq Composite: Closed at 13543.06, +4.19% for the week, and +5.08%, Year-to-date.
Russell 2000: Closed at 2168.76, +2.15% for the week, and +9.82% Year-to-date.
Economic Events for the Upcoming Week

Important economic data for the next week include the weekly Initial and Continuing Jobless Claims, the Chicago Fed National Activity Index (CFNAI), the Housing Price Index, the Consumer Confidence, the Durable Goods Orders, the Fed Interest Rate Decision, the Gross Domestic Product Annualized, the Personal Income and Personal Spending, the Michigan Consumer Sentiment Index, and Pending Home Sales.

This post was first seen on Talkmarkets.


US Stock Market Weekly Update December 28- December 31, 2020

stock market

The last trading week of 2020 saw major indexes hitting all-time highs, with small-cap stocks underperforming. A year with solid gains, especially for tech stocks. Will there be a Santa rally for 2021? It is too early for that, but what we should expect is a rotation of stock investing as the US stock market closed 2020 on record highs and stocks have become expensive. Although trading was light all major indices, except for Russell 2000 closed higher for the week. For 2021 I would expect value investing to gain more momentum, as growth stocks may face profit-taking. Both health care and consumer discretionary stocks were strong, while energy stocks lagged.

Economic News

The economic data reported for the week was positive for the US economy. The S&P/Case-Shiller Home Price Indices released showed the health of the US housing market to be strong, with a figure of 7.9%, beating the consensus of 6.9%. The Chicago Purchasing Managers Index released, which shows the overall economic condition in the US was better than expected, with a figure of 59.5, beating the forecast of 57.

The 2020 last weekly Jobless Claims report was a strong one as both Continuing Jobless Claims and Initial Jobless Claims were better than expected. The figures for the Continuing Jobless Claims and Initial Jobless Claims reported were 5.219 M and 787 K respectively. The consensus for the Continuing Jobless Claims and Initial Jobless Claims was 5.39 M and 833 K respectively.

For the week of December 28- December 31, 2020, the major US stock market indexes closed as follows on Thursday, December 31, 2020:

• Dow Jones Industrial Average: Close 30606.48, +1.35% for the week, +7.25% Year-to-date

• S&P 500 Index: Close 3756.07, +1.43% for the week, +16.26% Year-to-date

• Nasdaq Composite: Close 12888.28 , +0.65% for the week, +41.75%, Year-to-date

• Russell 2000: Close 1974.86, -1.45% for the week, +18.36% Year-to-date

Weekly Stocks Gainers

These are the top 3 gainers, stocks with 5 days of consecutive price advances:

1.  Sifco Industries (NYSEARCA:SIF), Close 8.40, 5-day change +115.38%

2.  500Wan.Com Ltd (NYSE:WBAI),Close 9.00, 5-day change +111.76%

3. Beam Global WT (NASDAQ:BEEMW), Close 66.98, 5-day change +44.98%

Weekly Stocks Losers

These are the top 3 losers, stocks with 5 days of consecutive price declines:

1. Fubotv Inc (NYSE:FUBO), Close 28.00, 5-day change -46.76%

2. Opendoor Technologies Inc WT (NASDAQ:OPENW), Close 7.72, 5-day change -35.23%

3. Wunong Net Technology Company Limited (NASDAQ:WNW), Close 37.53, 5-day change -34.13%

Economic events for the week January 4- January 8, 2021:

Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the Markit Manufacturing PMI, the ISM Manufacturing PMI, the Trade Balance, the ISM services PMI, the Non-farm Payrolls, and the Unemployment Rate.

Sources:

https://www.wsj.com/market-data/stocks/us/indexes

https://www.barchart.com

https://www.fxstreet.com/economic-calendar

The article appeared first on Talkmarkets.


US Stock Market Weekly Review Dec. 21 – 24, 2020

stock market weekly review

A new $900 billion US stimulus package, long anticipated, did little to the US stock market last week, with major stock indexes little changed. The small-cap and technology stocks continued to outperform as they have in the previous weeks. The shortened trading week due to the Christmas holidays ignored mixed economic news. 

The Gross Domestic Product Annualized (Q3) came in at 33.4%, better than the consensus of 33.1%, but both Personal Income and Personal Spending took a hit. Personal spending came in at -0.4%, worse than the forecast of -0.2%. The Personal Income figure was -1.1%, worse than the consensus of -0.3%.

The Durable Goods Orders were a positive surprise with a figure of 0.9%, beating the consensus of 0.6%.

The Continuing Jobless Claims and Initial Jobless Claims both were reported better than expected. The Continuing Jobless Claims figure was 5.337 M, compared to the consensus of 5.558 M. The Initial Jobless Claims number came in at 803 K, less than the forecast of 885 K.

On the negative side, the Michigan Consumer Sentiment Index released came in at 80.7, less than the forecast of 81.3.

For the week of December 21- December 24, 2020, the major US stock market indexes closed as follows on Thursday, December 24, 2020:

• Dow Jones Industrial Average: Close 30199.87, -0.34% for the week, +5.82% Year-to-date

• S&P 500 Index: Close 3703.06, -0.52% for the week, +14.62% Year-to-date

• Nasdaq Composite: Close 12804.73, +0.31% for the week, +42.71%, Year-to-date

• Russell 2000: Close 2003.95, +1.31% for the week, +19.45% Year-to-date

Weekly Stocks Gainers

Weekly Stocks Losers

These are the top 3 stocks that had 5 days of consecutive price declines:

1. Tuanche Ltd ADR (NASDAQ:TC), Close 3.63, 5-day change -36.32%

2. CRH Medical Corp (NYSEARCA:CRHM), Close 2.17, 5-day change -25.68%

3. Nikola Corp (NASDAQ:NKLA), Close 13.75, 5-day change -20.15%

Economic events for the week December 28- December 31, 2020:

Important economic data for the next week will be the weekly Initial and Continuing Jobless Claims, the S&P/Case-Shiller Home Price Indices, Pending Home Sales, and the Chicago PMI.

Sources:

https://www.wsj.com/market-data/stocks/us/indexes

https://www.barchart.com

https://www.fxstreet.com/economic-calendar

This article on the US Stock Market Weekly Review Dec. 21 – 24, 2020 was first appered on Talkmarkets.


Stock market today November 30, 2020

stock market today

A lower close today for the US stock market and the last trading session of November 2020. Nasdaq closed flat, small-cap stocks underperformed. The closing numbers for the US stock market today are:

S&P 500: 3,621.63,-16.72(-0.46%)
Dow 30: 29,638.64,-271.73(-0.91%)
Nasdaq: 12,198.74,-7.11(-0.06%)
Russell 2000: 1,819.82,-35.45(-1.91%)

stock market news

“Dow posts best month since 1987 as vaccine news boosts stocks.

Stocks fell Monday as investors gave back some of last week’s gains, which sent the S&P 500 and Nasdaq to fresh record highs and the Dow above 30,000 for the first time ever.

However, the three major indices capped off November with major monthly gains. The Dow posted a monthly gain of nearly. 11.9% for its best month since early 1987. The S&P 500 tracked toward a rise of about 10.7%, and the Nasdaq posted an 11.9% advance in November, which were each the best gains since April this year.

Investors rode a wave of upbeat news about impending COVID-19 inoculations, with AstraZeneca (AZN) becoming the latest drug-maker to announce strong efficacy data about its vaccine candidate last week. Moderna (MRNA) said Monday it will file for emergency use authorization with the U.S. Food and Drug Administration for its vaccine candidate, joining Pfizer (PFE), which has already applied for an EUA.

Stocks set to benefit most from the lasting economic reopening that a vaccine might confer ticked lower after soaring last week, as traders extended November’s rotation into cyclical stocks and away from some of the high-flying tech names that had led earlier on during the pandemic. Shares of Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), American Airlines (AAL), and United Air Lines (UAL) jumped by double digit percentages last week alone, far outpacing the broader market’s 2.3% advance over that time frame. Boeing (BA), American Express (AXP) and Chevron (CVX) led last week’s gains in the Dow.”

Stock market data: Yahoo Finance


Stock market live today June 29, 2020

Stock market live. All major stock indices are up today, Dow is up more than 400 points as of 11:27 AM, ET time today, June 29, 2020.

S&P 500: 3,039.91,+30.86(+1.03%)
Dow 30: 25,439.77,+424.22(+1.70%)
Nasdaq: 9,817.56,+60.34(+0.62%)
Russell 2000: 1,414.49,+35.71(+2.59%)

Small-cap stocks outperform, tech stocks underperform.

Stock market data: Yahoo Finance


US Stock Market Weekly Review June 22- June 26

US Stock Market Weekly Review

Read our US Stock Market Weekly Review June 22- June 26 exclusively on Talkmarkets. How the US stock market performed during the last week, stock movers, stock gainers, stock losers.


Stock market best performing sectors for the week ending on June 26, 2020

US stock market best performing sectors this week

For the week ending on June 26, 2020, these are the best performing sectors for the US stock market:

1.Technology: -1.06 %
2.Retail: -1.64 %
3. Basic Materials: -2.20 %
4. Healthcare: -2.51 %
5. Financial: -3.15 %
6. Consumer Discretionary: -3.19 %
7. Services: -3.23 %
8. Utilities: -3.65
9.Consumer Non-Cyclical: -3.72 %
10. Capital Goods: -3.79 %
11. Conglomerates:-3.97 %
12.Transportation: -3.99 %
13. Energy: -7.77 %

Stock market data: https://csimarket.com/

Sector Ranking reflects 5 Days Stock Performance by Sector.