By Markus Heitkotter
It was a rough short week of trading for stocks.
After Monday’s holiday, the major indices closed lower 3 out of 4 trading days, ending the week on a down note.
Preliminary GDP on Friday showed that the U.S. economy shrank in the first quarter of the year. Although the -0.7% decrease is bad news, this number was expected. And the good news: Friday’s -0.7% contraction is just the 3rd decrease since 2009.
Traders are also very concerned about Greece. There was a positive market reaction when Greece’s Economy Minister reported that Greece will make their next debt payment on June 5th. But in the end stocks wrapped up Friday’s session near session lows.
With the last trading day of May complete here are the stats for the month:
Although the S&P ended the week with a 19 point, the S&P managed a gain for the month of May. With a close of 2107.39 the S&P ended the month with a 22 point increase (=1.05%,).
The DOW lost 1.21% for the week with a 221 point decline. After finding support just about 18,000, the DOW ended the week at 18010.68. The DOW finished the month of May with a 170 point gain (=0.95%).
The NASDAQ followed the major indices and ended lower on Friday as well. After closing at 5070.03, the NASDAQ ended the week 0.38% lower. But it was the 2nd best month of the year for the NASDAQ. The NASDAQ led the major indices with a 2.6% gain in May.
With a new month of trading kicking off next week, here’s what you need to know:
Economic Reports -It’s a busy week for the economic calendar. Highlights include: ISM Manufacturing PMI (10:00AM ET) on Monday, ISM Non-Manufacturing PMI (10:00am ET) on Wednesday, and the Jobs Report (8:30am ET) on Friday.
Greek Debt Concerns – Although the IMF payment due to the IMF on June 5th seems to be covered, Greek officials and creditors haven’t made much progress in reaching a debt deal. Greek citizens seem concerned too as Greek bank deposits last month fell to the lowest level in 10 years.
Intel Corporation (INTC) rallied 1.32% fighting Friday’s broad market drop. The rally brought INTC within 6 cents of an ADR Profit Target at $34.81 before retreating.
Based on PowerX indicators INTC is still in an uptrend and traders will look to take profits next week.
A PowerX Method Sell Signal was identified on 18th May 2015.