The Week in Review

#stock #market #positive #economy #data #investors

$DIA $SPY $QQQ $RUTX $VXX

It was another positive wk for the US stock market, and it was nearly a record-setting wk for the S&P 500.

The benchmark index gained 0.6% marking record highs intraday 2X this week on relative strength in the cyclical and value-oriented stocks.

The DJIA outperformed with a 1.8% gainer. The Russell 2000 increased 0.6%, and the NAS Comp increased 0.1%.

With the majority of Q-2 earnings behind us, investors looked to economic data for the latest indications on the economy which were positive.

Weekly initial claims decreased by 228,000 to 963,000, which was the 1st time since March that claims checked in below 1-M.

Retail sales increased 1.2% in July and Q-2 preliminary labor productivity climbed 7.3%.  

Cyclical sectors took the data in stride.

The industrials (+3.1%), energy (+2.3%), consumer discretionary (+1.6%), materials (+1.5%), and financials (+1.3%) sectors advanced the most. The utilities (-2.1%), Real Estate (-1.8%), and communication services (-0.3%) sectors were the only sectors that closed lower. 

The Senate adjourned for August recess until after Labor Day, and House Speaker Pelosi (D-CA). She said will only resume talks with White House officials if they are willing to agree to at least a $2-T deal, no deal.

The US Treasury curve steepened noticeably this week on a sell-off in longer-dated maturities. The 10-yr yield rose 15 bpts to 0.71%, while the 2-yr yield was unchanged at 0.13%.

.DXY declined 0.3% to 93.10, WTI Crude futures rose 2.1%, or 0.88, to 42.05 bbl. Gold futures settled 20.60 lower (-1.1%) to 1,949.80oz

Friday, the major US stock market indexes finished flat to unchanged at: DJIA +34.30 at 27931.02, NAS Comp -23.20 to 11019.38, S&P 500 -0.58 to 3372.85

Volume: Trade on the NYSE came in light at 716-M/shares exchanged

HeffX-LTN’s overall technical outlook for the for the major US stock market indexes is Very Bullish at the weekended 14 August 2020.

  • NAS Comp +22.8% YTD
  • S&P 500 +4.4% YTD
  • DJIA -2.1% YTD
  • Russell 2000 -5.4% YTD

Looking Ahead: Investors will receive the Empire State Manufacturing Survey for August, the NAHB Housing Market Index for August, and Net Long-Term TIC Flows Monday.

Have a healthy weekend, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   
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