State of the Market: December 30th, 2017

A record-breaking 2017 came to an end with a slightly down week for the S&P 500.  The last trading week of the year is typically an uneventful one.  Most investors are busy enjoying the holidays so not much trading occurs.  Volume for the week was much lower than the average.  As you can see in the SPY chart above, there was very little movement.  On Friday we saw a small sell-off as some investors wanted to lock in their profits for the year.  Overall the index fell 0.27% this week but ended 2017 with an 18.95% gain.

Some of the top performing stocks in the S&P 500 this week were Alcoa (10%), SCANA Corporation (6.4%), Southwestern Energy (4.5%), and Vulcan Materials (4.5%) while the worst performing stocks were Micron (-7.4%), Under Armour (-7%), CenturyLink (-4.5%), and Nike  (-3.4%).

 



 

Apple Falls 3%

One of the only interesting news stories to come out this week was a report that Apple will cut its sales forecast for the iPhone X.  The article claimed that iPhone X demand is not as high as analysts expected.  I don't know whether this report is true but it did cause Apple's stock to drop 3% this week.  If Apple does cut its sales forecast, I would expect to see some more weakness in the stock.  However, a pullback is likely a great investment opportunity in AAPL.  The selling won't last long before the price resumes its uptrend.  Nothing is fundamentally wrong with the company.

Here's a look at Apple' stock chart.  The levels that could provide some support in the near future are 168 and 165.  I'd view a bounce off either of those levels as a buy signal.

Postive Economy Data

Some very good economic data was released this week.  Initial jobless claims were unchanged from last week.  This means the unemployment rate likely remains near a historically low level.  November home sales were much better than estimates.  Holiday shopping data appears to be strong.  Lastly, consumer confidence continues to be right at a 17-year high.  Solid economic data should continue to push the stock market higher going into 2018.

 

Let's take a closer look at the index charts!

 

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