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The Standard & Poor’s 500 Index reflected dismal numbers for May, helping, in part, to instigate an index wide drop in stocks early this month as the stock market – and weary investors – reacted to the halt in domestic manufacturing operations. The S & P was at its lowest numbers in the past three weeks, indicative that the manufacturing industry won’t be helping the stocks go up any time soon.
Both Bank of America Corp. and JPMorgan Chase & Co. suffered 1.6 percent losses, as financial companies felt the belt tighten. F5 Networks Inc. (FFIV) dove 7.1 percent, and they endured a Morgan Stanley rating cut, too. On the rise were Merck & Co. and Bristol-Myers Squibb Co., with their immune-boosting drugs helping them continue on an upward trend of gains this year.
Overall, the Standard & Poor’s 500 Index lost 0.1 percent this past week, closing at 1,628.67 on Friday. The Dow Jones Industrial Average added 57.75 points, or 0.4 percent, to 15,173.32.
For every five stocks that posted gains, eight stocks dropped, signaling that an index wide spiral was in effect. Similarly, index wide trading was up 24 percent for S&P 500 companies over the 30 day average.
“The ISM report was decidedly negative,” John Lynch, the Charlotte-based regional chief investment officer for Wells Fargo Private Bank, said by telephone. His firm manages $170 billion. “Bad news can only be good news for so long for stock prices. At some point it will impact earnings and market levels.”
Since 1945, there has been a recorded seven month winning streak in the stock market only 13 times. The strong beginning in 2013 has led to an actual gain – as opposed to a flat – start to June. The S&P 500 gained 2.1 percent in May, extending a healthy winning streak to seven months, which is the longest winning streak the market has seen since September, 2009.
