Broad Based Rally, Small Cap Stocks Lead
$DIA, $SPY, $RUTX, $QQQ, $VXX
- Wall Street’s small caps are beating the The Street
- The small-cap Russell 2000 finished + 1.0%, closing at a new all-time high
Wednesday’s broad based rally saw shares of smaller, domestically focused companies showing strength.
The small-cap Russell 2000 finished + 1.0%, finishing at a new all-time high, the tech-heavy NAS Comp added 0.6% and the S&P 500 and the DJIA advanced 0.4% and 0.3%, respectively.
The Russell 2000 (RUTX) tracks US small capitalization companies, as does the S&P 600 (SPN) which closed at a record high Wednesday, underscoring the ascent of a section of the stock market often overlooked by the financial media but not by savvy investors.
When the economy is stronger than normal, small caps do better. With a good economy like are seeing under The Trump Effect, we fully expect this to keep playing out into 2-H of this year, and beyond.
Widely used by small-cap oriented investment funds to benchmark their performance, the Russell 2000 has gained over 4% in 2018, compared to the S&P 500’s 2% rise.
That is a reversal from last year, when the Russell 2000 rose 13%, underperforming compared to the S&P 500’s 19% rally.
Materials was the top-performing sector on the day with a gainer of 1.2%, but consumer discretionary and consumer staples also outperformed, adding 0.8% apiece.
Wednesday, the major US stock indexes finished at: DJIA +62.52 at 24768.93, Nasdaq +46.67 at 7398.30, S&P +11.01 at 2722.46
Volume: Trade on the NYSE came in at 755-M/shares exchanged
- NAS Comp +7.2% YTD
- Russell 2000 +5.3% YTD
- S&P 500 +1.8% YTD
- DJIA +0.2% YTD
HefX-LTN’s Market Indexes Technical Analysis
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