Market Recap for Sunday, June 18th, 2017
It was another wild week of trading last week.
Here's what you need to know...
- Fed raises rates - As expected, the Fed raised rates last week. The vote was almost unanimous (1 member voted to keep rates the same). And if the economy remains on track, the Fed plans to raise rates 1 more time this year.
- NASDAQ slide continues - Tech stocks continued to struggle last week. The NASDAQ was lower 4 out 5 sessions last week, and finished the week in the red.
- DOW is at a record - While tech stocks continued their slide, blue chips traded at record levels. The DOW finished the week strong and ended the week with a new record close.
- Political drama continues - The Washington Post reported that Special Counsel Robert Mueller is investigating President Trump to determine if he tried to obstruct justice. Trump seemed to confirm that he is is under investigation with a tweet on Friday, saying "I am being investigated for firing the FBI director by the man who told me to fire the director. Witch hunt!" But investors don't seem too concerned, according to Bank of America Merrill Lynch, equity funds brought in $24.6 billion last week, the most since Trump's election victory.
Here's where the major indices ended the week:
- The S&P finished with a 0.1% gain. The S&P added 1 point and ended at 2,433.
- The DOW ended 0.5% higher. Up 112 points, the DOW closed at 21,384.
- The NASDAQ was down 0.9%. Dropping 56 points, the NASDAQ finished at 6,152.
Crude Oil (CL) was up 0.5% on Friday, but ended the week with a 2.5% loss. With a close of $44.93 a barrel, CL is trading near 6 month lows.
In stock news, Amazon (AMZN) made headlines on Friday after announcing plans to acquire Whole Foods (WFM) for $13.7 billion. AMZN finished 2.4% higher on Friday and WFM was up 29.1%, jumping on the $42 a share deal.
The deal is a big move into the grocery business for Amazon, and the impact AMZN could have in this sector did not go unnoticed. Walmart (WMT) was down 4.7% on Friday, Costco Wholesale (COST) lost 7.2%, Target (TGT) dropped 5.1% and Kroger (KR) was hardest hit with a 9.2% loss.
But here's the real kicker...after the announcing the plan to acquire Whole Foods, Amazon jumped on the news. And Friday's market cap increase was enough to almost pay for Whole Foods in one day!
This week is a quiet week for the economic calendar. Here are this week's key reports (all times ET):
- MONDAY - No major reports.
- TUESDAY - No major reports.
- WEDNESDAY - Existing Home Sales at 10:00am, Crude Oil Inventories at 10:30am.
- THURSDAY - Unemployment Claims at 8:30am.
- FRIDAY - New Home Sales at 10:00am.
This Week's Economic Calendar
Real Time Economic Calendar provided by Investing.com.
Have a great trading week!