75 Days in a Row Without a 1% Drop

For a while, it looked like today could be the first 1% drop for the S&P 500 since October 11. We’ve now gone 75 days in a row without a 1% loss, which is the longest such streak in a decade.

Fortunately, the market recovered and the S&P 500 closed with a loss of 0.60%. At its low, the index was down 1.16% for the day.

Today was a decent day for our Buy List, which was only down 0.34%. However, Cognizant Technology Solutions (CTSH) was an outlier. The IT outsourcer lost 4.40% on the day, which was far more than any other Buy List stock. The loss is probably a result of President Trump’s Executive Order. Interestingly, all the major airline stocks were down as well.

The Energy and Materials sectors were especially hard hit today while many of the Defensive sectors were only down modestly. Energy stocks have been gradually sliding lower over the last seven weeks, but they got a lot of damage on Friday and into today. Chevron’s (CVX) earnings report was especially bad.

This morning, the government said that personal income rose by 0.3% last month, and spending rose by 0.5%. That’s not bad.

We have two earnings reports tomorrow. Danaher (DHR) is in the morning, and AFLAC (AFL) will be in the afternoon. The Fed also meets tomorrow and Wednesday. Don’t expect much. Maybe something in June.

Posted by on January 30th, 2017 at 9:23 pm

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