There is every possibility that NASDAQ Composite (INDEXNASDAQ:IXIC) could continue to outperform Dow Jones Industrial Average 2 Minute (INDEXDJX:DJI) and S&P 500 (INDEXSP:INX) in the current week also. While the technology index is likely to end the week in the positive territory, the Dow Jones and the S&P 500 could close the week on a negative territory if there is no significant turnaround towards the end of the trading session.
In the first week of May, the three indices gained 0.88 percent, 0.63 percent and 0.32 percent respectively backed by some strong earnings number and economic data. The current week does not have any big earnings though some retailer stocks have hurt investors’ sentiments. This could signal as to what is to expect from rest of the retailers that will announce their results next week.
In the current week, there are at least five retail companies, J C Penney Company Inc (NYSE:JCP), Nordstrom, Inc. (NYSE:JWN), Dillard’s, Inc. (NYSE:DDS), Kohl’s Corporation (NYSE:KSS), and Macy’s Inc (NYSE:M), have reported their earnings. Significantly, except Nordstrom, all the other four have failed to meet revenue estimations though their EPS exceeded expectations. Their same store sales also dipped on a year-over-year basis. This could be a prelude to what is to expect from rest of the retailers next week.
Except Thursday, Nasdaq closed in the green in rest of the three days. On the other hand, except Monday, the Dow Jones closed in the red only. As far as the S&P 500, it remained flat with a minor gain or loss during the past four days of the week.
Two and half hours after the trading started, the Dow and the S&P 500 are trading in the red while Nasdaq is managing a slender gain. If this trend continued till the end of the day, then Nasdaq could end up the week with a gain of about 0.3 percent. On the other hand, the Dow Jones and the S&P 500 could close the week with a loss of approximately 0.54 percent and 0.4 percent respectively.
While six sectors were trading in the green, the other four sectors are trading in the red. Energy, non-cyclical consumer goods, healthcare, technology, telecommunications services, and utilities have added 0.45 percent, 0.40 percent, 0.47 percent, 0.32 percent, 0.41 percent and 0.54 percent respectively. On the other hand, basic materials, industrials, cyclical consumer goods and financials have suffered a setback of 0.18 percent, 0.48 percent, 0.38 percent and 0.33 percent respectively.