Market Direction: BULLISH alert
issued 9/21/2017
Stock on the Radar (STAR)© was launched 6/19/2017 Sunday evening. When there is a new stock recommendations for the week it is typically made available late Sunday, so investors can prepare to take a position when the market opens Monday for trading.
Last Week Review: Stocks were marginally higher on the week as investors continued to process the potential impact of tax reform and political developments out of Washington, D.C. From an economic perspective, the economy added 228,000 jobs in November, higher than the expected 195,000, according to Bloomberg. Average hourly earnings grew 2.5% over the past year, accelerating from the 2.3% growth reported in last month's report. Modest but rising wages should support household spending, in turn powering the economy forward at a moderate pace. November's jobs report is unlikely to materially alter the Federal Reserve's monetary policy approach of gradually raising interest rates (including a rate hike next week) and slowly reducing its balance sheet. Overall, inflation has rebounded from lows experienced midyear, labor market conditions remain quite healthy, and GDP has risen by more than 3% over the past two quarters, reflecting the solid fundamental backdrop that has supported the bull market in stocks.
How the market finished last week, the S&P 500 up 0.4%, the Nasdaq down 0.1%, and the Dow up 0.4%.
$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.
Stock on the Radar (STAR)© was launched 6/19/2017 Sunday evening. When there is a new stock recommendations for the week it is typically made available late Sunday, so investors can prepare to take a position when the market opens Monday for trading.
Last Week Review: Stocks were marginally higher on the week as investors continued to process the potential impact of tax reform and political developments out of Washington, D.C. From an economic perspective, the economy added 228,000 jobs in November, higher than the expected 195,000, according to Bloomberg. Average hourly earnings grew 2.5% over the past year, accelerating from the 2.3% growth reported in last month's report. Modest but rising wages should support household spending, in turn powering the economy forward at a moderate pace. November's jobs report is unlikely to materially alter the Federal Reserve's monetary policy approach of gradually raising interest rates (including a rate hike next week) and slowly reducing its balance sheet. Overall, inflation has rebounded from lows experienced midyear, labor market conditions remain quite healthy, and GDP has risen by more than 3% over the past two quarters, reflecting the solid fundamental backdrop that has supported the bull market in stocks.
How the market finished last week, the S&P 500 up 0.4%, the Nasdaq down 0.1%, and the Dow up 0.4%.
This Week: Next week is going to be
important for investors due to the FOMC meeting which takes place on Tuesday
and Wednesday. While a rate hike won’t surprise anyone I think that what comes
out of the Fed policy statement is going to be something to watch closely. I
say this because we once again got weak inflation data this week (not good for
longer-term yields) and if the Fed is more hawkish than expected, this could
affect shorter-term yields. If this occurs, and we see a flattening of the
yield curve, this could negatively affect equity markets. However, there’s no
indication that the Fed is going to be more hawkish, it will just be important
to watch because of the recent moves in the yield curve in my opinion. Also
important to watch will be next week’s inflation data, in the form of the PPI
on Tuesday and CPI on Wednesday. Lastly, retail stocks have been on the move
lately and Thursday’s Retail Sales reports has the potential to impact that
sector.
Markets
will likely be focused on tax reform and the Fed next week and the trend is
still up, but I think we could potentially see higher volatility in the latter
part of the week.
Economic
Calendar: JOLTS (12/11), PPI-FD (12/12), FOMC Meeting (12/12), FOMC
Announcement (12/13), Retail Sales (12/14), Industrial Production (12/15)
Some of the major earnings announcements on deck: ADBE,
COST, ORCL, FDX, PAY.
$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.
Related Link: http://www.stockmarket-direction.com/
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