This week, big victories did not equate to big-time gains. Most of the week’s stocks drifted in the same manner as they have recently been doing. Listlessness is the new norm. The markets didn’t seem too impressed by the big win for centrist Emmanuel Macron’s over his conservative opponent. Nor did it respond well to positive data and earnings.
On the data front, it continues to paint a relatively bullish picture. Various metrics of consumer, labor and manufacturing health this week continued to be positive. Albeit, the numbers have dropped from their recent highs.
At the same time, earnings for most of the market have been robust. Profits have come in strong, but stocks have continued with the lower revenue/cautionary guidance estimates’ trend that has persisted for roughly a year.
Given the indifference of the markets and the start to summer vacation season, maybe investors should listen to the old market adage about “selling in May and going away.”
Check out last week’s Market Wrap here.
Monday was all about the international markets and the big-time win on Sunday by Macron. The French election was seen as a critical test for the European Union, the euro currency and the overall rise of populism in Europe. With Macron’s win in the presidential election, analysts anticipate that the euro and the monetary union is safe for now. And while, initially, U.S. stocks did surge, they pulled back a bit as his win was widely telegraphed by various polls. Declines in materials’ firms also helped keep a lid on the day’s gains.
In the end, the markets were up marginally. The Dow Jones Industrial Average gained 5.34 points, to close at 21,012.28. The S&P 500 Index rose less than a point, while the NASDAQ Composite gained 1.90 points.