The Trump Market, DJIA Marks Another Record High
Friday, the Industrials led DJIA to a new closing high Friday ahead of Monday’s major sector reshuffle, capping a week in which investors shrugged off trade dispute concerns.
Declines in the FAANGs dragged on equity benchmarks, helping erase the session’s gains on a day when Quarterly re-balancing spurred volatile Quad-witching trading.
The big rearrangement of the GICS takes effect on Monday, 24 September, with the creation of the communication services group. The new industry category will include 3 of the 4 FAANGs, Facebook, Alphabet and Netflix and could force investors who track indexes based on the classification to reshuffle their money.
The S&P 500 Index was flat to Unchanged Friday ending the week up after marking a record high Thursday.
Quad-witching is when futures and options on indexes and individual stocks expire, and the largest revision to the Global Industry Classification Standard since Y 1999 may be behind the slide and the higher-than-average volumes.
Earlier, the bullish mood that characterized most of the week buoyed global equity markets.
Stocks rallied in Europe and Asia, and the MSCI All-Country World Index was poised for a 7-month high.
US Treasury yields held above 3%, USD and commodities gained on the day.
The Commodity Index climbed to its highest level in more than a month, fueled by gains in Crude Oil and Copper.
The EUR fell from a 3-month high after data showed euro-area expansion edged lower in September. In Japan, news that the BOJ is trimming purchases of debt maturing in more than 25 years helped boost 20-year and 30-year government bond yields.
Raw materials, stocks and emerging-market assets are all rallying as investors bet the global economic expansion is intact despite the latest data from Europe and the escalating trade war.
Emerging-market stocks and currencies extended a rally. Indian stocks bucked the developing-nation trend, as a plunge in banks set off an exodus from financial shares.
Friday, the major US stock market indexes finished at: DJIA +86.52 at 26743.50, NAS Comp -41.28 at 7986.95, S&P 500-1.08 at 2929.67
Volume: Trade on the NYSE came in at 2.66-B/shares exchanged
- NAS Comp +15.7% YTD
- Russell 2000 +11.5% YTD
- S&P 500 +9.6% YTD
- DJIA +8.2% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 21 September
Have a terrific weekend
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