Stocks stage a slight retreat
Wall Street strategists are fighting historic odds when urging investors not to chase the rally in the U.S. stock market.
They’re predicting the Standard & Poor’s 500-stock index will see momentum fade in the second half after shares climbed 8.2 percent for the best first-half performance since 2013. The average year-end prediction, 2,439, represents a 0.6 percent increase by December, the least bullish forecast at this time of year since 1999, data show.
Equities fell for the week just ended as the tech sell-off resumed, offsetting a rally in banks. The S&P 500 slipped 0.6 percent to 2,423.41 over the past five days and Dow Jones industrial average retreated 0.2 percent.
The Nasdaq 100 Index dropped 2.7 percent for the worst week of the year, reversing its gain for June to a loss. The decline ended a seven-month winning streak.
Among the 20 strategists surveyed by Bloomberg, stretched valuations and decelerating profit growth are often cited as reasons for caution. Yet stocks have shrugged off everything from monetary tightening to oil’s slump to drama at the White House, surging past Wall Street forecasts that this year were the least bullish in more than a decade.
The Treasury will sell $39 billion of threemonth bills and $33 billion of six-month bills Monday. They yielded 1.04 percent and 1.14 percent in when-issued trading. It will also sell $40 billion of four-week bills Monday.
Editor’s note: Our weekly composite stock listing includes companies based in Washington or with a strong presence here. The rest of the table shows firms as ranked by market capitalization. And we’ve added year-to-date data because readers told us it would be useful.