While the rally has been remarkable, it’s a little tired now. However, that doesn’t mean the race is over. Just two months into the New Year, the results would make most money managers drool with envy and justify their private jets. In fact, I continue to say Wall Street is going to have to go back and sharpen their pencils.
- Dow Jones Industrial Average: +11.7%
- S&P 500: +11.5%
- NASDAQ Composite: +13.8%
- Russell 2000: +17.0%
This leg is out of steam, but will investors panic?
Yesterday’s breadth was decidedly bearish, but not surprising. Even after a great Consumer Confidence report and comforting pledges from Federal Reserve Chairman Jay Powell, major indices slipped into the closing bell.
NYSE
- Advancers: 1,213
- Decliners: 1,724
- Up Volume: 1.56 billion
- Down Volume: 2.01 billion
NASDAQ
- Advancers: 1,190
- Decliners: 1,857
- Up Volume: 985.1 million
- Down Volume: 1.19 billion
The selling in safe havens underscores the fact most investors want to ride out any pause in the hottest sectors.
S&P 500 Index | -0.08% |
Communication Services (XLC) | 0.00% |
Consumer Discretionary (XLY) | +0.14% |
Consumer Staples (XLP) | +0.06% |
Energy (XLE) | -0.32% |
Financials (XLF) | -0.30% |
Health Care (XLV) | -0.36% |
Industrials (XLI) | -0.27% |
Materials (XLB) | -0.57% |
Real Estate (XLRE) | -0.20% |
Technology (XLK) | +0.21% |
Utilities (XLU) | -0.12% |
Portfolio Approach
We asked subscribers to take profits on Caterpillar (CAT) and Zebra Technologies (ZBRA) and added a new idea in Health Care on Friday. Please contact your rep or research@wstreet.com.
Communication Services 1 | Consumer Discretionary 4 | Consumer Staples 1 |
Energy 1 | Financials 1 | Healthcare 2 |
Industrial 3 | Materials 4 | Real Estate 0 |
Technology 2 | Utilities 0 | Cash 1 |
Today’s Session
Sluggish is the word, but the news is, or at least the reaction to the news, is pretty good this morning. Big names in the retail space are trading higher on earnings.
- Lowe’s (LOW)
- TJ Maxx (TJX)
- Best Buy (BBY)
Best Buy shares are soaring the most (+13%) after strong same store sales and management upping their dividend 11% to $0.50, which is the sixth consecutive year of dividend increases.
I say let’s watch the action in the action and see if more investors are lured into taking profits.