The market ended mixed last week as investors digested a slew of earnings and economic data. So far, earnings are mixed: Netflix, Facebook, Amazon, and Google reported earnings and Netflix and Facebook are up, but the others are down. Several other well-known stocks reported earnings last week with the reaction still mixed. The Dow ended higher last week but the Nasdaq, S&P 500 and small-cap Russell 2000 fell. Near term, the market looks a tad overbought and due for a little pullback. The next level of resistance to watch is the 50 day moving average lines for the major indices.
A Closer Look at What Happened Last Week…
On Monday, stocks ended mixed as the Nasdaq rallied while the Dow and S&P 500 ended slightly lower. After the close, Alphabet (GOOG), Google’s parent company, reported earnings and the stock fell on the EU fine.
Stocks rallied on Wednesday after the Fed kept rates unchanged and said they will begin unwinding their massive balance sheet “relatively soon.” Elsewhere, a slew of earnings were released and, on average, the results remained mostly positive. After the bell, Facebook (FB) jumped after reporting earnings.
Thur & Fri Action:
Stocks opened higher on Thursday but closed lower after sellers showed up in a slew of tech stocks. Facebook was the standout winner while other stocks got hit such as Twitter (TWTR) in tech-land. The market is getting overbought/extended to the upside and is way overdue to pull-back. After the close, retail giant Amazon fell after reporting earnings.
Stocks slid on Friday as investors digested the latest round of economic and earnings data. Before the open, the government said, GDP grew by 2.6%, which matched estimates. As expected, Amazon dragged the market lower.
Market Outlook: All Eyes On Earnings
The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape.