It was a mixed week for US equity indexes, with net weekly changes ranging from +1.2% (NYSE comp'), +1.1% (SPX), +0.9% (Dow), +0.6% (Nasdaq comp'), -0.9% (R2K), to -1.0% (Trans).
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
Nasdaq comp'
Dow
R2K
NYSE comp'
Trans
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Summary
Four US equity indexes were net higher for the week.
The NYSE comp' was sig' higher, whilst the Trans was sig' lower.
The SPX and Nasdaq comp' broke new historic highs.
More broadly, five indexes are trading above their respective monthly 10MA, and have positive monthly momentum. The Transports is below it's 10MA, if having positive momentum.
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Looking ahead
It will be the start of Q3 earnings, starting with JPM, Tuesday morning. Mr Market will be equally focused on the latest inflation data, as to whether the Fed might be forced to raise rates Oct'28th.
Earnings:
M -
T - $JPM $GS $WFC $C $UNH $JNJ $DPZ $ACI $FBK $AZZ
W - $BAC $MS $BLK $PGR $STT $FAST $ASML $SOTK $EQBK $HOMB
T - $TSM $CMC $ERIC $SCHW $MAN $PNC $MRSH $BNY $BSVN $FHN $AA $IBKR $JBHT $INDS $WSE $WAFD $SFNC $CNS
F - $TRV $MTB $TFC $RF $CFG
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Econ-data/events
M -
T - Small bus' opti, new home sales, US T-budget (2pm)
W - CPI, Fed Beige book (2pm)
T - PPI, Empire state manu', trade invent'
F - Import prices, indust' prod', *OPEX*
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Final note
Considering bond yields, the looming elections, and various geo-political news, the US market is holding up very well. The fact two indexes broke new historic highs this past week, is the ultimate reminder of underlying strength.
Yes, market breadth isn't great, but bulls could argue we're just seeing bullish consolidation, with some sector rotation.
I'd remain open minded to a 2-3 week equity washout, but once we're past the midterms, the market will be free to power upward, on the hope that 2027 will at least be 'fine'.
... and if you don't like equities, well.... maybe you'd prefer a govt' bond instead?
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Have
a good weekend
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