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Home / Business / Trump has best June for shares this year – but half a dozen characters flashes warnings

Trump has best June for shares this year – but half a dozen characters flashes warnings



President Donald Trump on Tuesday morning thanked for a stock market that has largely climbed to new heights.

The 45th president via Twitter speculated the buoyancy in stock markets and said, "The stock market is on its way to one of the best months (June) in our country's history. Thanks, Mr. President!"

S & P 500 Index

SPX, -0.56%

is set to its best June since 1955 while the Dow Jones Industrial Average

DJIA, -0.35%

is on its way for its strongest June return since 1938.

That said, the S & P 500, which posted a record in Thursday – climbed the first since April 30 – and the rally of other major capitalization stocks, including Dow Industrials and the technology-laden Nasdaq Composite Index

COMP, -1.00%

highlights the performance of significant references left in equity. It includes, among other things, the closely monitored Dow transports.

These weaknesses can signal that everything is not a picture that is perfect in the investment landscape here and abroad. Investors are breaking a threat-triggered trade conflict between the United States and China, and signs of declining global growth, among fears that a recession will hit the domestic market, which is likely to be a record period of expansion.

"I'm definitely worried about the financial indicators, and I'm worried that the transport doesn't support this last stage higher," said Diane Jaffee, senior portfolio manager at TCW, to MarketWatch in a telephone interview.

Here's a look at some of the big indexes and active laggards as well as outperformers:

Russell 2000 index
Source: FactSet

On Monday, a popular benchmark target for small capital focused stocks rang up Worst day since 31. May, down 1.3%, as most of the major benchmarks were delivered scary to flat returns on a listless trading day. The loss for Russell highlights the group of stocks that have significantly delayed behind their big board brothers. So, while the S&P 500 index is fresh from the heels of a record, the Russell 2000 is more than 12% from August 31, and qualifies the index for which technical analysts on Wall Street as a correction.

Dow transports
Source: FactSet data

Dow Jones Transport Average

DJT, -0.70%

in the meantime, declined by 1.5% on Monday, with average transportation of nearly 12% from last 4 September. The meter reflects the participation in a basket of airline, rail and shipping companies, thinking that this segment of the market is a barometer of the health of the broader economy.

MarketWatch's Tomi Kilgore says transports are believed to have a symbiotic relationship with Blue Dip's industries, as the 20 transport components are considered "taken" by the 30 members of the industry. Underperformance can signal that the economy is not shooting at all of the cylinders, although others look more closely at the reference points.

Other Signs of Weakness

Parabolic Gold


August Gold, the most active futures contract for is at pace for its highest settlement since May 19, 2013. In another way, gold is up by more than 20% from the lowest of $ 1,184 per ounce, entered August 16, according to FactSet data. To be sure, gold reacts to a combination of factors that have given it fresh life since languishing at around this time last year. The dollar has weakened helps lift assets that are priced in the currency, making them more attractive to buyers using other currency units. But a major catalyst has been global central banks that have signaled that monetary policy is in force, driving debt dividends, moving in the opposite direction of prices, to multi-year downturns.

Read: Opinion: The Federal Reserve is about to create much more zombies

Check out: The Fed keeps the interest rate steady – but it gives off a lot of alarm chambers by removing & # 39; patient promise

Negative dividends

The total amount of debt with dividends below zero earlier in the month hit record $ 13 trillion. The balloon value of underlying debt reflects how global bond markets continue to attract inflows from frightening investors who seem to buy bonds in response to fears of a broad economic downturn.

Dividends for the German bonds, known as bottom, fell to record low of 0.333% on Tuesday. Germany's debt is often seen as a proxy for the euro area's health because it represents the largest economy in Europe.

Present gives the weak bonds worldwide, with 10-year government bond yield

TMUBMUSD10Y, -0.51%

at around its lowest level of more than two years below 2%, has also supported gold bidding, which does not offer a coupon.

Value line index
Source: FactSet data

The geometric index of the value line

VALUG, -0.31%

who traces the relocation of a number of stocks and is equilibrium, is almost 12% of August 29 at all times high.

The value line is used by many technical analysts as a measure of broad market participation, or breadth, especially under great features. Indexes such as S & P 500 and Nasdaq are, conversely, market-weighted, as big as Apple Inc.

AAPL, -0.71%

or Amazon.com Inc.

AMZN, -1.15%

has a stronger influence on these references.

Examination says?

Economic survey data and target sensors have been terrible.

Last week, the New York Fed's Empire State Business Terms Index recorded its biggest decline in negative territory. Separately, the IHS Markit says its flash production index leader's index of 50.1 in June from 50.5 in May, the worst reading since September 2009. And the flash service index fell to 50.7 from 50.9 , the worst reading since March 2016.

On Tuesday, a consumer confidence survey in June fell to its lowest level for almost two years.


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