Stocks This Week: Stocks will try to recover their mojo originally appeared on TheStreet.
So after Friday, when the all the stocks in the Standard & Poor’s 500 fell an average 1% and the major averages fell more than 2% in a week, it’s understandable to ask, “OK, now what?”
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Well, there are 1,382 earnings reports to think about. There’s the economy, too. And all the tariff negotiations to consider. Will there be a deal with China? Can Canada kiss and make up with the Trump administration?
How about we think about only a few earnings (we’ll get to them shortly) and some of the forces that may well affect markets more than we expect now.
Futures trading early Monday suggests stocks will open strongly.
Related: Warren Buffett’s stock still struggling since May peak
The Standard & Poor’s 500 Index managed to hit five straight new closing highs between July 21 and July 28. The index then closed lower each day for the next four days ending with Friday’s bust, with the S&P 500 off 1.6% for the day.
The question is if those four days of selling were one-offs. Let’s look at four realities.
The indexes and many stocks have been giving off signals for weeks that it was getting to be overbought. Multiples have expanded until something triggered professional money managers to decide to wait for better prices. You saw it Thursday when the Federal Reserve held rates steady and wouldn’t say when a rate is coming. You saw it Friday after reports from Amazon.com (AMZN)  and Coinbase Global (COIN)  disappointed investors.
Not so much because the jobs created came in less than expected. It was the huge revisions for May and June that enraged President Trump enough to fire the head of the Bureau of Labor Statistics, accusing her of cooking the data to make him look bad. (Without evidence)
This is a month, which, the Stock Traders Almanac tells us, is the worst month of the year for the Dow Jones Industrial Average and second worst month for the S&P…
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