Market Direction: BULLISH alert
issued 11/10/2016
The stock market is waiting on the tax reform decision...
The
S&P 500 and the Dow ended slightly lower Wednesday, maintaining a soft tone
after the Federal Reserve minutes indicated that an interest-rate hike is
likely but the pace of future tightening could be more moderate than expected
given muted inflation.
The
Nasdaq bucked the broader trend to finish at a record, logging its third gain
in a row.
The
market is closed Thursday for Thanksgiving.
How
did benchmarks perform?
The
S&P 500 SPX, -0.08% fell 1.95 points to 2,597.08
with financials leading the losses and the Dow Jones Industrial Average DJIA, -0.27% dropped 64.65 points, or 0.3%, to 23,526.18.
The
Nasdaq Composite COMP, +0.07% was up 4.88 points to
6,867.36.
Tepid
moves on Wednesday follow solid gains during the previous session when all three gauges finished at all-time closing highs.
The three equity benchmarks are up between 16% and 27% for the year as of
Wednesday’s close, helped by factors such as an expanding U.S. economy, low
returns for bonds, growth in corporate profits and bets that the Trump
administration will deliver tax cuts and other business-friendly policies.
What
drove the markets?
The
Fed viewed a “near-term” increase in interest rates as possible but central
bank officials also expressed concerns about persistently low inflation,
hinting that the bank may dial back its rate increases in 2018. The language
from the Fed’s Oct. 31-Nov. 1 meeting was comparatively softer than in the
September discussions, reflecting worries that tepid inflation might also be a
result of “developments that could prove more persistent,” according to the Fed
minutes.
The
minutes also showed that several members worried that keeping interest rates
too low could create a financial bubble.
What
are strategists saying?
“The
November FOMC Minutes showed a committee that sees economic momentum building
in the near term but remains uncertain about the inflation outlook. Overall, we
read the November minutes as dovish. The upgrade to the economic assessment
notwithstanding, the minutes show there is still considerable unease about
hiking when inflation keeps surprising to the downside. We continue to expect
that a December hike is baked in,” said a team of BNP Paribas economists led by
Paul Mortimer-Lee.
“Trading
volumes are really thin today, which is not surprising given it’s a holiday
tomorrow,” said Kim Forrest, senior analyst and portfolio manager at Fort Pitt
Capital Group.
Forrest
noted that as long as the economy continues to grow, companies will be able to
grow revenues.
“With
unemployment at such low levels, companies will have to either raise wages,
hire more people or invest in capital expenditures. Any of those will result in
higher demand and bode well for many industries,” Forrest said.
What
are the data saying about the economy?
Durable-goods orders fell 1.2% in October, well
below the MarketWatch forecast of a 0.7% gain. Excluding transportation orders
increased 0.4%.
Initial jobless claims, a tool to measure U.S.
layoffs, fell by 13,000 to 239,000 in the week ended Nov. 18. That’s below the
240,000 estimate of economists polled by MarketWatch.
The University of Michigan’s latest read on consumer
sentiment came in at 98.5, topping expectations for a reading of
98.0.
What
are other assets doing?
European
stocks SXXP, -0.27% traded mostly higher, while Asian markets largely closed with gains. Hong
Kong’s Hang Seng Index HSI, -0.30% rose 0.6%, topping 30,000 for
the first time in a decade.
Oil futures US:CLZ7 rose sharply but pulled back from intraday highs
after data showed domestic crude supplies fell by less than expected last week.
The ICE U.S. Dollar Index DXY, -0.06% is off 0.7% while gold futures GCZ7, -0.16% settled higher.
$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, email us. Share with a friend.
The all-time highs since our initial
recommendation to go LONG
this market. Here is how the markets have performed:
Stock Market
Direction Recommendation (9/21/2017)
|
||
Dow
|
up 1,258.57 points a 5.63% gain
|
11/21/17
|
Nasdaq
|
up 451.83 points a 7.03% gain
|
11/22/17
|
S&P 500
|
up 100.59 points a 4.02% gain
|
11/21/17
|
Related Link: http://www.stockmarket-direction.com/
No comments:
Post a Comment