Stock Market Update Sunday, June 16th, 2019
Stocks were all over the place last week.
The major indices were up nicely on Monday, rallying higher. But after the rally stocks pulled back and give up a majority of the day’s gains.
On Tuesday, stocks were up big at the open, but retreated and finished the day with a loss.
And the indecision on Monday and Tuesday really set the tone for the rest of the week, teetering back and forth.
Wednesday stocks were slightly lower. On Thursday stocks finished in positive territory and then Friday ended with a loss.
Although it was a choppy week, the major indices ended higher, finishing higher for the 2nd week in a row.
Here’s what traders were focused on:
- Crude Oil – Last week Crude Oil (CL) traded at 6-month lows. On Wednesday, CL finished at $61.16 a barrel. But oil finished off lows of the week after two attacks on oil tankers in the Gulf of Oman. The U.s blamed the attacks on Iran.
- The Fed – Although the win streak came to an end on Tuesday, a lot of the recent rally is tied to the Fed and the hopes that the Fed will cut rates.
Here’s where the major indices ended the week:
- The S&P finished with a 0.5% gain. Up 14 points, the S&P ended at 2,887.
- The DOW ended higher by 0.4%. Adding 106 points, the DOW closed at 26,090.
- The NASDAQ was up 0.7%. With a 55 point gain, the NASDAQ finished at 7,797.
Crude Oil (CL) finished with its 2nd lowest weekly close of the year. With a 2.5% loss, CL ended at $52.54 a barrel.
Broadcom (AVG) was a drag on tech on Friday, dropping 5.6% after reporting weaker than expected revenue. The drop in revenue was blamed on trade uncertainty and the restrictions the U.S. has placed on Huawei.
Facebook (FB) jumped on Friday after some positive news about Facebook’s plans to enter the cryptocurrency world. The stock finished Friday with a 2.2% gain.
This upcoming week the Fed will hold their 2-day policy meeting.
Traders will be keeping a close eye on the Fed Statement, looking for clues for a possible rate cut.
Although the Fed isn’t expected to cut rates at the June meeting, the CME Group’s FedWatch tool shows that traders predict that the Fed will cut rates in July (86.3% probability).
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.