And On the 7th Week the Market Rested
The markets were up for 6 straight weeks heading into last week, which was the 7th. It took a breather… along with a lot of people who are taking a vacation. However, one person who did NOT rest last week was Monument Wealth Management’s Tim Lee and his wife Carolyn. At 8:02pm on Friday, Aug 9th, they gave birth to 7 pound, 8 ounce Abigail Frances Lee. We are all very happy for them – mother and baby are both doing well.
The Standard and Poor’s 500 index (S&P 500) is having one of its 10 best years in history through the August 2nd mark. Now granted, it’s the 9th best, but still… there are a ton of people out there that still are living in the dark that it’s a bull market let alone a Top 10. The S&P 500 was a long way off from first place, considering that in 1933 it was up 51.59% through Aug 2nd (Bespoke Investment Group).
Of course by Friday the 9th, the market sold off and the S&P 500 dropped out of the top 10. See below for more info on the market last week.
Earnings Update
The ratio of companies posting negative guidance against the companies posting positive guidance is still negative. The reading this week worsened to -2.90% from a -2.40% last week. With +80% of the companies already reported, it looks like we will probably see an 8th quarter in a row of a negative spread between companies raising vs. lowering guidance.
The percentage of companies beating their revenue estimate for the 2nd quarter of 2013 did not change much from last week and currently sits at 56.6%, which is better than last quarter. The percentage of companies beating their earnings estimates ticked down last week from 64.9% to 62.9% but is still a very nice reading. If that sticks, it will be the highest percentage of companies beating earnings estimates since the 4th quarter of 2010.
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Investment advice offered through Monument Advisory Group, LLC a Registered Investment Advisor (RIA). Securities offered through LPL Financial. Member FINRA/SIPC. Monument Advisory Group and Monument Wealth Management are separate entities from LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Stock investing involves risk including loss of principal. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries, and widely held by individuals and institutional investors. The Standard & Poor’s 500 Stock Index (S&P 500) is an unmanaged capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NASDAQ Composite Index measures all domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. The Russell 2000 Small Stock Index is an unmanaged index generally representative of the 2000 smallest companies in the Russell 3000 Index. The Russell 2000 is an unmanaged index generally comprised of companies with lower price-to-book ratios and lower forecasted growth values. The 2, 10 and 30 year Treasury is simply the yield at the close of the day.
(1) West Texas Intermediate crude spot price is as of end of week.
(2) London Bullion Market Association; gold fixing pricing at 3 p.m. London time.
David B. Armstrong, CFA
President & Co-Founder
Dave got into the industry when he discovered his passion for finance in his mid-20’s. He’s a combat veteran and served as an officer in the United States Marines Corps on both active duty and in the reserves, retiring at the rank of Lieutenant Colonel. While serving on active duty, Dave was unable to spend money on deployments, so he became a self-taught investor. Along with a few bucks cash as a bouncer, his investing performance grew to be good....
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