On Friday indexes were held back by “ok” quarterly earnings from General Electric (GE) which were followed by a downbeat forward guidance from management, which sunk the stock. They fell over 5 percent intraday but managed a recovery to end up down 2.92% at $25.91. During the day the stock reach $25.26 setting a new 52 week low. The stock is down 23% from its 52 week high of $32.85. Still, on Friday, analysts were rating GE a strong buy on the back of the decline in the stock. The dividend yield is now at 3.71% but the stock is trading at 29.7 times price to earnings which is above the average of 24.5 times for the sector they belong in and far above my choice for this sector, Honeywell, which is trading at its 52 week high and still at 21.1 times price to earnings.

Other stocks pulled back on GE’s results including Caterpillar and 3M, but after setting new highs in both the S&P and NASDAQ this week, profit-taking was to be expected for Friday.

Here is the outlook for the S&P and NASDAQ indexes for Mon Jul 24 2017 as viewed by the advance decline numbers from the close of trading on Fri July 21 2017.

....The market breadth indicator analysis and outlook is for FullyInformed Members.  

Advance Decline Numbers Outlook For July 24 2017





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