By J Clinton Hill, Capital Markets Strategist @ Hillbent.com
Market Commentary: August 11, 2016
Positive news begets positive results and today we witnessed new record highs on the S&P 500 (SPY), Dow Jones 30 Industrials (DIA) and Nasdaq 100 (QQQ). The Russell 2000 (IWM) has yet to reach its all-time high, but to its credit also enjoys a uptrend. As we are probably in the latter stages of the bull market, investment bias appears to favor large cap and value oriented stocks.
Catalysts for today’s price action were:
- Better than expected earnings were reported from bellwether retailers, Macy’s (M) and Kohl’s (KSS).
- A rebound in both Brent and WTI Crude Oil prices as Saudi Arabia’s oil minister commented that action could be taken to stabilize prices.
- Strong conditions in the US labor market prevail as Jobless Claims dipped to 266k vs. estimates @ 265k, which is still at historically low levels.
(See exchange traded fund performance table below for a comparative summary of asset class performance.)
ETF Performance Summary: August 11, 2016
Signing off at Hillbent…