The sharp rally last Friday limited the weekly losses in the Dow Industrials and the S&P 500. The social media stocks bore the brunt of the selling and several others will report their earnings this week.
Given the weak GDP report last week, this week’s focus will be on the monthly jobs report. In Friday’s Week Ahead technical review, I pointed out that last week’s correction stopped right where it needed to in order to avoid more technical damage.
The weakness is especially evident in the small-cap averages so it is important that the rally continue in impressive fashion this week. The futures are higher in early trading, but it is the close today that will be important.
With the continued fear over higher yields, these four income stocks look especially vulnerable to further declines after last week’s trading.
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