Market Direction Week of January 23, 2017©

Market Direction: BULLISH alert issued 11/10/2016

Last Week Review: Stocks were lower for the second week in a row and the Dow Jones Industrial Average is on the edge of negative territory so far this year. Company earnings releases drove much of this week's stock market action. While aggregate earnings are expected to grow, company-specific results are likely to surprise on both the upside and downside. 

It was another busy week for economic reports and the data was quite positive overall. I want to highlight the weekly jobless claims because the 4-week moving average dropped to the lowest level since November 1973; that’s over 43 years ago! Most of the time, falling weekly claims will translate into increased non-farm payrolls and a further decline in the unemployment rate in the next couple of months. The labor market is a key component of a strong economy, and continued improvement supports a growing economy in 2017.

How the market finished last week, the S&P 500 down 0.1%, the Nasdaq down 0.3%, and the Dow down 0.3%.

This Week: Service PMIs, CPI and GDP numbers dominate the economic calendar next week, but the real focus remains on earnings season with the bulk of companies reporting the next two weeks. With US exporters coming into view, investors should watch out for commentary on how the stronger dollar is having an impact.

However, the big event will be what Donald Trump does now he is in power – we can expect a swathe of executive orders from the new commander-in-chief that could upend both the US political order and the established global economic system.  

Economic Calendar: International Trade in Goods (1/26), Leading Indicators (1/26), Durable Goods Orders (1/27), GDP (1/27)

Some of the major earnings announcements on deck: MCD, JNJ, VZ, MSFT, GOOGL.

$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, write us. Share with a friend. Cha-ching.

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