The Dow Jones Industrial Average and major U.S. stock indexes took a wild ride on Friday The Dow Jones Industrial Average (DIA) and other major U.S. stock indexes took a wild ride on Friday afternoon, giving up gains and falling into the red before climbing back to a mostly positive finish for the day and week. For the Dow Jones Industrial Average, the day saw a broad swing of 172 points from high to low.
Markets had managed to shrug off generally weak economic reports and a downward revision in GDP but the news of a possible Russian invasion of Crimea inserted new fear into the afternoon’s trade.
For the month of February, the SP500 (SPY) gained 4.3% and the Dow Jones Industrial Average (DIA) advanced 4%. The Nasdaq (QQQ) climbed 5% for February.
On My Stock Market Radar
A look at the chart of the Dow Jones Industrial Average (DIA) shows momentum flattening out and the index just below significant resistance levels. Of the major indexes, the Dow is the only one that has yet to reach new recent highs. Also the Transportation Average is well below its recent highs and so these are red flags surrounding the strength and commitment of February’s powerful advance.
Economic reports were mixed as GDP was revised downward to 2.4% compared to the original estimate of 3.2%. Weekly unemployment claims rose and Chicago PMI rose to 59.8, beating expectations, and University of Michigan consumer sentiment climbed. U.S home sales and prices advanced, however, January durable goods orders fell.
In China, the Yuan was making news as it tumbled sharply in late week trading.
Next week brings uncertainty in the form of Russian action in Crimea and possible U.S. and international response and a number of important economic reports:
Monday: January personal income and consumer spending, February Markit PMI, Febriary ISM
Wednesday: Federal Reserve Beige Book, ISM services sector, ADP employment
Thursday: weekly jobless claims, January factory orders
Friday: February Nonfarm payroll and unemployment report.
Bottom line: With tensions in Ukraine, big economic reports and new, though unconfirmed highs in major U.S. stock indexes, the upcoming week promises to be exciting, indeed.
Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.