With the month of June coming to an end, U.S. stocks were trading higher on Friday (June 30), with the S&P 500 rising 0.2 percent in midday trading.
Among the leading industries were firms that sell directly to consumers and industrials. The S&P 500 gained 8.3 percent so far this year and is on track to have its largest first-half gains since 2013, reported CNBC. The Dow Jones Industrial Average also increased 77 points in trading Friday (June 30), with Nike being a big contributor. The Dow Jones Industrial Index has gained 8.1 percent in the first half of 2017 and is having its best start in a year also since 2013, noted the report. Meanwhile the Nasdaq, which is heavily laden with tech stocks, traded slightly above its break even and has been outperforming both the S&P 500 and the Dow Jones Industrial Average, with an increase of 14.2 percent so far in 2017. It is on track to have its largest first half of the year gains since 2009. Technology stocks have been surging for most of the year so far, up 15 percent, but during the last month, shares of tech companies have declined more than 2 percent. During the second half of 2017, CNBC reported bank stocks will be the leaders. “While we have been growing more concerned about a summer top pattern and potential correction into the fall, that medium-term bearish reversal pattern has not developed yet,” said Jason Hunter, a technical analyst at JPMorgan, in a research note covered by CNBC. “Furthermore, the current weakness is in part driven by the bearish global bond price action.”
Driving an increase in bank stocks for the second half of the year could be the Federal Reserve’s announcement this week that all the big banks passed their stress tests, paving the way for them to buy back shares or raise their dividends.