Stock Market Update Sunday, July 28th, 2019
Stocks finished the week strong after a record-breaking Friday.
The major indices were up for three days straight before a loss on Thursday.
But stocks bounced right back with the S&P and NASDAQ finishing the week at fresh record highs.
The DOW was another story. It was held back by stocks like Boeing (BA).
While many stocks were making records, Boeing was down 8.6%, suffering its biggest losing week since the Max 737 first came under fire.
Here’s what traders were focused on:
- A Fed Rate Cut – Comments from ECB President Mario Draghi on Thursday, had traders questioning how aggressive the Fed will be next week. Draghi said that there isn’t a “significant risk of a recession” in the EU. But the fact remains that traders believe a rate cut is almost guaranteed. According to Fed Funds Futures, traders believe that there is an 80% chance of a 25 basis point rate cut and a 20% chance of a 50 basis point cut. So if the Fed doesn’t cut rates it would come as a huge shock.
- Earnings – It was a busy week for earnings. And Friday we saw the reaction to earnings from some big names. Alphabet (GOOGL) rocketed higher after reporting strong earnings and a stock buyback program. The stock finished with a 9.6% gain. Starbucks (SBUX) was also an earnings winner, up an impressive 8.9%.
Here’s where the major indices ended the week:
- The S&P finished with a 1.7% gain. Up 49 points, the S&P ended at 3,026.
- The DOW ended higher by 0.1%. Adding 38 points, the DOW closed at 27,192.
- The NASDAQ was up 2.3%. With a 184 point gain, the NASDAQ finished at 8,330.
Crude Oil (CL) was stuck in a $2 range for most of the week. With a 0.7% gain, CL ended at $56.20 a barrel.
Beyond Meat (BYND) is on fire! But has it moved too much too fast?
The stock is up 226% since the open of its first day of trading in May. But is this rally justified?
According to CNBC, BYND is now worth more than 25% of the companies in the S&P 500. This includes names like Jetblue (JBLU), Under Armour (UA) and Viacom (VIA) just to name a few.
This upcoming week is all about the Fed.
The 2-day Fed meeting starts on Tuesday and will wrap up on Wednesday with the Fed Statement and interest rate decision.
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.