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S&P 500 and DJIA Unshackled; Unemployment Euphoria Continues; SYY, DYN and ABVT Ride the Tide
Can Unemployment Euphoria Continue to Boost US Stocks
The S&P 500 (.INX), the Dow Jones Industrial Average (.DJI) the Nasdaq (.IXIC) roared back to life last week after the Bureau of Labor Statistics (BLS) announced the U.S. unemployment rate fell from 9.5% to 9.4%.
- The Dow Jones Industrial Average (DJIA) was up +113.81 points, or +1.23%, at 9,370.07
- The S&P 500 (SPX) was up +13.40 points, or +1.34%, at 1,010.48
- The Nasdaq was up +27.09 points, or +1.37%, at 2,000.25
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| | The question is will the S&P 500 and the DJIA continue to surge higher or will stock traders have sobered up a bit over the weekend? Investors have been watching economic announcements for the past few months for any signs of recovery in the United States economy. At even the slightest bit of positive news, investors would send both the S&P 500 and the DJIA higher. So you have to imagine that news as important as the unemployment announcement last Friday that the S&P 500 and the DJIA will continue to move higher for longer than one day. Plus, with Monday being a slow economic announcement day---especially ahead of the FOMC interest-rate announcement this Wednesday---the momentum from last week should continue forward on the S&P 500 and the DJIA. | | | | | | | | | | Looking Forward to Monday | | | | | | | Three key stocks are releasing their earnings for Q2 Monday: SYSCO Corporation (SYY), Dynegy Inc. (DYN) and AboveNet, Inc. (ABVT). | | | | | | | | | SYSCO Corporation through its subsidiaries and divisions, is engaged in the marketing and distribution of food and related products to the foodservice or 'food-prepared-away-from-home' industry. | | | | | | | | | | | | Dynegy Inc., a holding company, conducts substantially all of its business operations through its subsidiaries. Its business is the production and sale of electric energy, capacity and ancillary services. | | | | | | | | | | | | | | | | | | Looking back over the past six months in the stock market, it is interesting to see that while the S&P 500 and the Dow Jones Industrial Average have both been moving higher, not all sectors in the market have been screaming higher.
As you can see in the chart below, the materials sector of the stock market, represented by the Materials SPDR Fund (XLB), has had the strongest growth during the past six months (at just above 40 percent). This is largely due to the increase in commodities prices this year that has accompanied the decline in the value of the U.S. dollar.
If you're looking for hot sectors, try the financial, materials and technology sectors. | | | | | | | NEXT: Learn more about Intermarket Analysis in the Stock Market.
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