Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Dow Jones Industrials

The Only Way to Beat Rising Gasoline Prices

By | February 22, 2013

Beat Rising Gasoline PricesWith remarkable consistency, oil stocks continue to do great on the stock market. Even though spot oil seems to be stuck below $100.00 a barrel, gasoline prices have been going up for the last month, as U.S. refiners use January and February for maintenance shutdowns.

Any way you cut it, oil remains a huge part of our daily lives, and most oil stocks are trading at or very near their … Read More

Large-Caps Shine as Dow Jones Industrial Average Toys with All-Time High

By | February 5, 2013

Industrial Average Toys with All-Time HighAny way you slice it, the Dow Jones Industrial Average had a great January—one of the best in years. Yet the stock market still isn’t trading all that well. In fact, I don’t really like the trading action at all. The market has kind of been ignoring news, both good and bad, and moving listlessly, without trend. If the uncertainty in the world, the U.S. economy, and Washington is reflected … Read More

U.S. Oil Gushing, Oil Stocks Getting Ready to Move

By | January 30, 2013

Oil Stocks Getting Ready to MoveThe stock market’s recent breakout has legs, and there’s more optimism for the economy and corporate earnings this year. The stock market had a very strong start to the year, with the Dow Jones Industrials leading the way. Transportation stocks have turned strong, and the NASDAQ Composite is moving solidly. Even the price of oil is slowly ticking higher—$100.00 oil is a near-term reality.

There is a renaissance taking place … Read More

Intel’s Share Price Says It All

By | November 20, 2012

Intel’s Share Price Says It AllThe Dow Jones Industrials gave up most of their gains this year in the recent stock market selloff; given current fundamentals, this market is oversold. Strife in the Middle East definitely affected investor sentiment last week, but the market is now betting that U.S. policymakers will address the fiscal cliff issue before the end of the year. Across the board, expectations among equity investors have come downward; this gives stocks … Read More

S&P 500 up Against a Wall Following Slight Breakdown

By | October 19, 2012

Wall Following Slight BreakdownThe S&P 500 is up against a bit of a wall and has to convincingly break 1,465 again, which it achieved in mid-September, in order to accelerate. A lot of corporate earnings have been decent, but quite a few are reporting light visibility for the fourth quarter, and this is no surprise. The stock market peaked mid-September when the mini-rally, driven by a third round of quantitative easing (QE3), consolidated; … Read More

Financial Reports

No Wonder This Stock Market Index Outperformed

By | October 5, 2012

Wonder This Stock Market Index OutperformedAutomatic Data Processing, Inc. (NASDAQ/ADP) is one of those blue chips that have a good thing going with their private sector U.S. jobs reports. The stock market moves on the news, and so does Automatic Data Processing (ADP). According to ADP’s National Employment Report, the nonfarm private sector added 162,000 jobs from August to September on a seasonally adjusted basis. Manufacturing added 4,000 new jobs, while construction added 10,000, the … Read More

Dow Jones Industrials Shine as Market Awaits FOMC

By | September 13, 2012

Dow Jones Industrials Shine as Market Awaits FOMCEven though the Dow Jones Industrials just hit their best level since 2007, the Dow Jones Transportation Index began to appreciate with the other major indices only in the last week—and this is with buoyant oil prices. It all leads me to believe that the stock market is technically overbought and almost a little ahead of economic fundamentals. (See “Stock Market Investor Sentiment Drops Again…Why?”)

However, I can’t argue with … Read More

Stock Market on the Verge of a New Trend

By | September 6, 2012

Stock Market on the Verge of a New TrendThe stock market is on the third leg of a repeating pattern that began about three years ago. The spectacular stock market decline that began in 2008 hit a bottom in March 2009, and then promptly recovered. July 2009 saw a significant recovery in share prices, followed by a rising trend that lasted until April 2010. The pattern then repeated itself the next year and looks to be in the … Read More

Dow Jones Transportation Index Still Diverging From Broader Market; What It Means

By | August 30, 2012

Dow Jones Transportation Index Still DivergingTrading volume on the stock market is lethargic, even for the traditionally slow summertime period. All eyes will be on Ben Bernanke this Friday, and the main stock market indices won’t move much until then. (See “Broader Market to Consolidate—No More Upside Without the Fed.”)

The significant divergence that has built up between the S&P 500 Index and the Dow Jones Transportation Index remains, and to me, it represents non-confirmation … Read More

Dow Jones Industrials Looking Good, But Transportation Leadership Has Vanished

By | August 24, 2012

Dow Jones Industrials Looking GoodStock market breadth isn’t that strong, and what’s worrisome from my perspective is the non-confirmation from the Dow Jones Transportation Index. One stock market leader that I always follow is Union Pacific Corporation (NYSE/UNP), which is a railroad stock that just hit an all-time record high on the stock market of $126.91 per share. This is one component of the Dow Jones Transportation Index that’s doing great, but a lot … Read More

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