The Nikkei Index crossed above the 30K for the first time in nearly 30 years. The economic data which came out of Japan confirmed that the economy is growing 12.7% on an annualized basis in October to December last year. The actual number was much stronger than the forecast of 9.5%.
European futures are also pointing to a higher today. Volume in the equity markets is likely to remain light as the US markets are closed for the bank holiday, and we also have very little to no action over in Asia as Chinese traders are celebrating their holidays. The biggest news over the weekend that we saw hitting the headlines was that the US Senate acquits Trump for inciting the Capital riot even as the bipartisan majority votes to convict. This means there are chances that we may see another term of Donald Trump.
The Asian stock market traded scored decent gains to kick start thei week. The NIkkei index increased 1.67%. The ASX index soared 0.91%, while the Korean Kospi index advanced 1.67%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth maintained its upward strength on Friday. 83% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth strengthened as the index rallied on Friday. 88% of the shares traded above their 200-day moving average.
Dow Jones Futures Today
The Dow Jones futures are trading higher today. In terms of economic data, investors will be looking at the Retail sales number, which is due on Wednesday. The forecast for this number is 0.9%, while the previous reading was at -1.4%.
The Dow Jones futures have posted five consecutive days of gains on Friday. There is no doubt that the bulls are in strong control of the price as the price is trading above the 50, 100, and 200-day SMA on the daily time frame. However, the most intriguing element to pay attention to is that the last week’s price moves have been very small—every day, we witnessed minuscule price moves for the index. This means that traders are concerned that the equity markets have become too rich, and a retracement may be on the card, as the RSI clearly indicates that. The near term support is at 31,186, while the resistance is at 32,000.
Stock Market Rally
The S&P 500 stock index closed higher on Friday; the index advanced by 0.47%. The material sector led the index higher – 10 out of 11 sectors closed higher.
The Dow index posted another record high last week. The Dow stocks moved the index higher by 0.09%. 21 shares advanced, while 9 shares closed lower.
The NASDAQ composite, a tech-savvy index, closed higher by 0.50% on Friday.
S&P 500 Leaders and Laggards: Illumina and DaVita Inc
Illumina stock contributed the biggest gain, soaring 11.86%. DaVita stock was the largest drag; it fell by 7.35%. The S&P 500 stock index is up 3.48% so far this year.
Dow Jones Leaders and Laggards: Walt Disney and Intel
Intel provided the biggest help for the Dow Jones; it advanced by 1.15, while Walt Disney was the largest decliner, it fell by 1.67%.