Stocks have biggest weekly loss since May – Here’s what traders are focusing on right now…

Stock Market Update Sunday, July 21st, 2019

Stocks finished lower last week.

On Monday, the S&P was trading at record highs.

But then back to back losses on Tuesday and Wednesday brought the major indices into negative territory for the week.

On Thursday, the major indices opened lower then rebounded, and finished with a win.

Things looked good early on Friday, with stocks rallying at the open. But a sharp reversal brought the major indices back to lows of the week.

With Fridays drop, the S&P and NASDAQ finished with their biggest weekly loss since May.

Here’s what traders were focused on last week:

  • Earnings = Traders haven’t expected much from this earnings season. But so far, earnings are off to a nice start. According to FactSet, 15% of the S&P 500 companies have reported Q2 earnings. And 79% have posted better than expected profit.
  • Interest Rates = Traders are counting on a 25-basis point rate cut at the July 30-31 Fed meeting. And some are hoping for a 50-basis point cut. On Thursday, NY Fed President Williams made comments supporting the cut when he said that it’s better to act quickly when “faced with adverse economic conditions.”
  • Iran = On Thursday, the U.S downed an Iranian drone that flew too close to an American Warship. Then on Friday, there was news that Iran captured a British oil tanker. Concerns in the Middle East led to a small rebound in Crude Oil and was the main reason for Fridays stock market reversal.

Here’s where the major indices ended the week:

  • The S&P finished with a 1.2% loss. Down 37 points, the S&P ended at 2,977.
  • The DOW ended lower by 0.7%. Dropping 178 points, the DOW closed at 27,154.
  • The NASDAQ was down 1.2%. With a 98 point loss, the NASDAQ finished at 8,146.

Crude Oil (CL) traded lower 4 out of 5 days last week. With a 7.6% loss, CL ended at $55.79 a barrel. 

Silver (SI) was on the move last week. With a 6.4% gain, Silver finished with its best weekly close in a year and had its best week since 2016.

It was a busy week for earnings. And on Friday, traders reacted to earnings from a few big DOW names.

Microsoft (MSFT) reported strong earnings and was up as much as 3.1% and hit record highs before retreating and ended the day with a 0.2% gain. American Express (AXP) beat expectations but finished with a 2.8% loss.

Earnings will remain in the spotlight. Next week 25% of the S&P 500 companies will report Q2 results.

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.

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