Your Weekly Market Blip 6/28/19

Your Weekly Market Blip 6/28/19

Stocks continue to creep higher almost like a cat sneaking up on a mouse. At the close the Dow was up 73 at 26,599 on lighter volume. For the week, the Dow was down about 170 points or 0.6%. IBD has markets in rally mode while BTS continues to sit in US treasury bonds. For the month of June, the Dow gained about 7% after losing 6.7% in May. The Dow is up 13.7% year to date and the S&P 500 Index is up 16.7%.

Economic data continues to be mixed as some indicators show a slowing in growth rates while others, like consumption and a revised GDP number look good. Q2 earnings reports will start in two weeks.

Banks were higher today after several large institutions announced capital allocation plans in the wake of successful stress tests. Leading the charge was Bank of America which announced a 20% dividend increase and said it will buy back about 10% of its outstanding stock. JP Morgan Chase will up its dividend by 13% and purchase $29 billion in stock. Citigroup and Wells Fargo also announced substantial dividend increases and stock buyback plans.

The G20 meeting in Japan is underway with President Trump meeting with various leaders from various places around the globe. All eyes will be on the big meeting tomorrow with Trump and Xi. They will discuss trade, Hong Kong (maybe). With all the unpredictability these days the outcome of this meeting is up in the air.

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