Microanalysis of the recent Market, economic conditions, and the outlook

Microanalysis of the recent Market, economic conditions, and the outlook Essay example
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Microanalysis of the recent market, economic conditions, and the outlook Name: Number: Course: Lecturer: Date: Microanalysis of the recent market, economic conditions, and the outlook Stock markets in the United States of America have been doing well since the beginning of the year…

Introduction

The good returns in March were attributed to positive economic data on employment and retail sales. In S&P 500, stocks listed in all sectors ended the month in a positive territory led by healthcare, utilities and consumer staples sectors which were among the best performing. The investors mainly bought into stocks offering relatively high dividend yields, strong brands, and some other business models that had lagged behind. Broadly, consumer discretionary and financial stocks outperformed the market expectation. The rest were less robust led by stocks from the energy sector which was the least performing. The stocks did well across all market capitalizations, with value and growth shares fairly matched during the month. In the month of April, the stock market underwent what analysts would call market correction after touching record highs in both the S&P 200 and DJIA. The DJIA touched levels just below 14900 while S$P 500 rallied to above 1,600 points. Analysts say the market has to correct itself after a rally which began late 2011, through 2012, to March this year. The indices dropped at the close of the month as compared to the March data. Going forward, the markets are picking in May, but the yearly cycle sell off is expected in the next few days which might depress the market (T. ...
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