US equities finished higher even in a sleepy Thursday trading, ending just off best levels. Growth did outperform value again, with lower rates and dollar softness helping to support the markets. Tech was the best performer with good gains in mega-cap names like AAPL and MSFT. Consumer discretionary was helped by AMZN and select retailers. Financials finished mixed with banks, life insurers among the laggards. The Energy sector fell. Treasuries were firmer helping to stem rates. Dollar was weaker against the majors. Gold finished up 1.0%. Oil was weaker, with WTI settling down 0.3%.
We have been highlighting the recent strength in the dollar coinciding with choppy trading for risk assets. The Invesco DB US Dollar Bullish Fund (UUP) has been unable to break through $25. Fading from this resistance level has been a tailwind for equities over the past days, keeping the inverse correlation in place.
S&P futures up 0.1% in Friday morning trading. US equities on track for good weekly gains with upside leadership from growth and momentum plays. Asian markets mixed overnight Hong Kong and China among the laggards while Japan rose. European markets mixed. Treasuries weaker with curve steepening but yields still mostly lower for the week. Dollar firmer against the major currencies though still down for the week. Gold is off 0.7% while WTI crude is pretty much flat.
Bullish + Strong Industry
This week we screen the Strongest Industry Groups for stocks that meet the criteria as laid out below:
The screen returned 23 stocks that could be considered if the setups are intact.
*Note, this screen was run before today’s update. Your results may differ but the concept is the same.