Dow Jones Index Finds Strong Support and Rises
By Dale Gillham | Published 10 June 2019
The Dow Jones Index was up 4.71 percent last week after finding strong support at around 24,800 points. The May employment figures were disappointing, and this sparked discussion about a possible interest rate cut, which may have been the catalyst for the Dow Jones Industrial Average to rise. Although with interest rates at historical lows, I believe it is a little too early to be talking about a rate cut, especially as consumer confidence is good.
On Friday it was announced that the proposed 5 percent tariff on goods imported from Mexico was indefinitely postponed after Mexico agreed to US demands. This will have a positive impact on the future market outlook on the S&P 500, and it’s expected that Wall Street will respond positively this week. I also expect the US stock market will continue to perform in the second half of 2019.
The best sectors this week were Materials up over 9 percent followed by Technology up by 5.97 percent. Of the Top 100 stocks in the S&P 500, Linde was up 10.80 percent and Broadcom was again up strongly at 9.23 percent, closely followed by Apple up 8.61 percent.
Microsoft was also up over 6 percent, which put its market capitalization back over one trillion-dollars, making it the biggest stock in the S&P 500. Of the top 10 stocks in the S&P 500, six are technology stocks and the top 10 stocks make up 21 percent of the market capitalization for the S&P 500.
Good luck and good trading!Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also author of the award winning book Accelerate Your Wealth—It’s Your Money, Your Choice.
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