With the Fed Statement on Wednesday and the Jobs Report on Friday, there was a lot of news to digest this past week.
Looking back on the week, stocks started with a loss on Monday. On Tuesday, the major indices were down early but ended the day with small gains.
On Wednesday, trading was sideways until the Fed Statement. There was a quick move higher in response to the statement, but the major indices sold off and were in a downtrend for the rest of the afternoon.
The Fed kept rates unchanged and will continue to follow its path of planned gradual tightening. Traders expect that the Fed will raise rates for the 2nd time this year at their June meeting. The Fed didn’t seem too worried about inflation rising past their 2.0% goal, and this left some investors a little concerned.
On Thursday, the major indices touched lows not seen in a month and the S&P also breached its 200-day moving average. But the major indices bounced back and were mixed by the end of the day.
Then came Friday’s closely watched Jobs Report.
The May Job Report didn’t reveal any major surprises. Hourly Earnings were up 0.1% vs the 0.2% expected, 164,000 Non-Farm Jobs were added compared to the 190,000 expected, and the Unemployment Ratedropped to 3.9% compared to the 4.0%.
The major indices opened the day slightly lower on Friday and hit session lows in the first 5-minutes of the day. But then stocks turned on a dime a rallied for the rest of the session.
Friday’s rally wasn’t enough to bring the S&P and DOW back into positive territory, but the NASDAQ was another story. The NASDAQ looked strong and finished the week with gains and its best close since Mid-March.
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Here’s where the major indices ended the week:
- The S&P finished with a 0.2% loss. Down 6 points, the S&P ended at 2,663.
- The DOW ended 0.2% lower. Dropping 49 points, the DOW closed at 24,263.
- The NASDAQ was up 1.3%. With a 90 point gain, the NASDAQ finished at 7,210.
- Bitcoin ended 8.0% higher. Adding $720, Bitcoin is trading at $9,690.
Crude Oil (CL) ended with its best weekly close of the year. Up 2.5%, CL ended at $69.71 a barrel.
Apple (AAPL) was on fire last week! Apple was up nicely earlier in the week after earnings. But Apple got another boost on Friday after Berkshire Hathaway (BRK.B) revealed that it added to its Apple positions by purchasing another 75 million shares of Apple in the first quarter. Apple hit a record high on Friday and finished the week with a 13.3% gain.
In earnings news, Q1 earnings continue to be upbeat. Pandora (P), GoPro (GPRO) and Shake Shack (SHAK)beat analyst expectations on Friday and were up 19.8%, 9.9%, and 18.0% respectively.
Looking at the week ahead, we have a few earnings reports and a pretty quiet economic calendar aside from CPI Data on Thursday. The million dollar question…will we finally get a breakout in the major indices?
Source: RockwellTrading by Markus Heitkoetter | Original Link