After a positive start on Monday, stocks struggled for most of the week.
Here’s what was moving the markets last week:
- Trump & China – Trade negotiations seemed to fall flat after President Trump said that he was doubtful a deal with China could be reached.
- Small Cap Stocks – The Russell 2000, comprised of small-cap stocks, finished with new records for 3-days straight (Wednesday thru Friday).
- Treasury Yields – On Thursday, 10-year yields hit 3.11%, the highest level since 2011.
- The DOW – With Friday’s close, the DOW is now back in negative territory for the year (0.02%, down 4 points). Cisco (CSCO) was the biggest loser for the DOW last week after dropping 5.9%. Cisco reported better than expected earnings on Thursday but dropped 4.3% during the two trading sessions after the earnings beat.
By the end of the week, the major indices were trading slightly lower while Russell sat at record highs.
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Here’s where the major indices ended the week:
- The S&P finished with a 0.5% loss. Down 15 points, the S&P ended at 2,713.
- The DOW ended 0.5% lower. Dropping 116 points, the DOW closed at 24,715.
- The NASDAQ was down 0.7%. With a 49 point loss, the NASDAQ finished at 7,354.
- Bitcoin ended 2.0% lower. Dropping $165, Bitcoin is trading at $8,255.
Crude Oil (CL) had its best weekly close since July of 2015. On Thursday, Crude Oil pushed past $72 a barrel but quickly reversed. CL ended the week with a 0.8% gain at $71.34 a barrel.
In earnings news, Nordstrom (JWM) suffered a 10.9% loss on Friday after missing same-store sales estimates. Applied Materials (AMAT) was another earnings loser after cutting revenue guidance. AMAT lost 8.3% on Friday.
On Saturday, a joint statement following the conclusion of last week’s trade talks revealed that China has agreed to significantly increase its purchases of U.S. goods. Although the statement didn’t address recent tariff threats, it made clear that two countries will “seek to resolve their economic and trade concerns in a proactive manner.” We’ll see how the markets digest this news on Monday.
Source: RockwellTrading by Markus Heitkoetter | Original Link