The Streak Is Broken. After spending most of the day below the break-even line, stocks mounted a comeback but fell short of ending Friday in the black. All three major indexes closed with slight losses, breaking the five-day positive streak since last Friday. Still, this is the third straight week that saw sharp increase in stock prices. In today’s After the Bell, we…
marvel at the great performance of 2019 two weeks into the new year; look into the latest inflation data released today; and explain why the upcoming earnings season might be a good chance to hunt for deals.
Good Start to The Year
Market ended the day with little movement on Friday after a five-day steak of positive returns. The S&P 500 is now hitting a “wall of resistance”–the 2,600 level–where selling pressure is expected to emerge.
For the first seven trading days of 2019, the S&P 500 has a gain of nearly 3.6%, the best since 2003. Since 1950, whenever the S&P 500 rose more than 1.1% after the first five days of the year, each of those years–except for 2018–the index closed higher 23 out of 24 times, according to data from LPL Financial strategist Ryan Detrick. A good start seems to be strongly indicative of a year of gains.
The latest inflation data released today comes largely in check. The headline consumer price index (CPI) edged lower 0.1% in December compared to the previous month. The over-40% plunge in crude-oil prices since October has contributed a big part to that drop. Taking