Indicator of the Week: Why Doesn't the Market Like Mondays?
By Rocky White, Senior Quantitative Analyst
Foreword: Everyone dreads Monday, and that's especially true for investors. The underperformance of Monday has recently garnered some attention. From June through July, the Dow Jones Industrial Average (DJIA - 13,157.97) saw nine straight negative Mondays. This underperformance, however, has been going on for some time. On the chart below, the red line shows the return for the Dow since 2011. The green line shows what the return for the Dow would be if we could just get rid of Mondays. As you can see, the Dow would be up more than 20% without Monday, compared to about 13% as it is.
Monday Performance: The tables below summarize the Dow returns in 2011 and 2012 by day of the week. In 2011, Monday was the only day that saw more negative days than positive days, and it averaged a loss of 0.07%. This year so far, Mondays have been abysmal, averaging a loss of 0.10% and being positive only a third of the time.
To put the 33% positive figure into perspective, this is the worst return for any single weekday since 1984, when Wednesdays were positive just 31% of the time. It's also the worst figure for a Monday since 1973.
Bucking the Trend: Though the Dow has done horribly on Monday, there are individual stocks that have actually done quite well on the first day of the week. Below are the stocks that have had the highest percentage of positive Mondays. SBA Communications Corp. (SBAC) tops the list with 22 of 30 positive Mondays so far in 2012. The bigger-cap names on the list are Apple (AAPL), Vodafone Group (VOD), AT&T (T), BP plc (BP) and Verizon Communications (VZ). What this exactly means for those companies ... I'm not sure. But it's interesting, nonetheless.
This Week's Key Events: A GDP Update, and a Look at the Beige Book
Schaeffer's Editorial Staff
Here is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.
And now a few sectors of note...
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