Market Outlook
U.S. stocks posted a fourth straight week of increases but
ended last week little changed as losses in healthcare shares offset gains in
energy. The S&P 500, which hasn't made a 1 percent move this month, is now
up 10.4 percent for the year. For the week, the Dow and S&P 500 rose 0.4
percent and the Nasdaq climbed 1.2 percent. The updated year-to-date
performance chart below has Treasury bonds as far-and-away the best performing
asset class while precious metals have been atrocious.
Biotech stocks were among biggest decliners in the S&P
health care index, which fell 0.8 percent and was the biggest drag on the
S&P 500. As we mentioned last week “…The
Health Care sector has been one of the best performers recently, but is
starting to fall after the U.S. Supreme Court agreed to hear a challenge to a
key part of the Obamacare health law that, if successful, would limit the
availability of federal health insurance subsidies for millions of Americans...Industrials
have been coming on strong over the past month…” The biggest change from
recent weeks is the plunge in the Utilities sector which had been leading the
market. This suggests that traders are looking to accept riskier assets at the
expense of dumping risk adverse assets like Utility stocks.
By Gregory Clay
Investment Strategist
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