Last week can be summed up in one word: disappointing.
Things looked good early on with the NASDAQ rallying to record highs on Monday and Tuesday. But it was all downhill from there.
The DOW led the major indices lower with a 1.5% loss for the week. And the S&P gave up 1.2%, dropping 4 days straight before locking in a small gain on Friday.
Political concerns played a big roll in last week’s stock market disappointment.
First, we had renewed trade war worries after reports that President Trump is looking to introduce more tariffs aimed at China. This time the tariffs will be directed at technology, telecommunications, and consumer electronics.
There was also news that Special Counsel Robert Mueller subpoenaed the Trump Organization in his ongoing investigation into Russia’s meddling in the 2016 Presidential election.
And we saw more shakeups in the Trump administration. Secretary of State Rex Tillerson was replaced by Mike Pompeo and CNBC commentator Larry Kudlow was named as Trump’s new economic advisor (replacing Gary Cohn who resigned a little over a week ago). There’s also rumors that the national security adviser could be on his way out.
With changing roles in the Trump administration, a possibility of a trade war with China, and uncertainty over the Russia investigation, an index known as the “Geopolitical Risk Index” is at a 15-year high…the highest since 2003 when the invasion of Iraq when George Bush Sr. was President.
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Here’s where the major indices ended the week:
- The S&P finished with a 1.2% loss. Down 35 points, the S&P ended at 2,752.
- The DOW ended 1.5% lower. Dropping 389, the DOW closed at 24,947.
- The NASDAQ was down 1.0% With a 79 point loss, the NASDAQ finished at 7,482.
- Bitcoin ended 20.3% lower. Losing $1,941, Bitcoin is trading at $7,605.
Crude Oil (CL) finished higher for the second week in a row. Up 0.3%, CL ended at $62.36 a barrel.
In earnings news, Broadcom (AVGO) dropped 4.8% on Friday, even though earnings were better than expected. And Adobe (ADBE) was up 3.1% after beating earnings and revenue estimates.
Looking at the week ahead, traders will keep on an eye on reports from G20 Meetings on Monday and Tuesday. And here are this week’s key reports (all times ET):
MONDAY – No major scheduled reports.
TUESDAY – No major scheduled reports.
WEDNESDAY – Existing Home Sales at 10:00am, Crude Oil Inventories at 10:30am, FOMC Statement at 2:00pm, FOMC Press Conference at 2:30pm.
THURSDAY – Unemployment Claims at 8:30am.
FRIDAY – Durable Goods Data at 8:30am, New Home Sales at 10:00am.
Source: RockwellTrading by Markus Heitkoetter | Original Link