Market Direction: BULLISH alert
issued 2/15/2018
$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 Beige Book verdict is in...
The
Fed’s verdict: The Federal Reserve said the U.S. grew “moderately”
from late April to early May in its latest evaluation of the economy,
indicating the central bank remains firmly on track to raise interest rates
next month.
Although
companies have responded to chronic shortages of skilled workers by boosting
pay and overall compensation, the Fed found that “wage increases remained
modest” in most of the country.
Prices
for goods and services rose “moderately” in most regions.
The
central bank was widely expected to raise interest rates at its next meeting in
June and its survey known as the Beige Book does nothing to dispel that notion.
What
happened: In every region of the country, Fed officials
characterized the economy as performing well. Manufacturers raised production,
banks reported stronger demand for loans and home builders were very busy,
among other things.
Some
businesses expressed worries about the Trump administration’s ongoing trade
battles with China and other countries will disrupt international trade.
Steel
and aluminum prices rose in some areas, for example, owing to White House plans
to slap tariffs on imports of those metals.
A
talent shortage, however, is the biggest source of anxiety. Truck drivers,
electricians, carpenters, painters and computer technicians were particularly
hard to find, executives said.
In
the St. Louis area, “some firms have begun relaxing drug-testing standards and
restrictions on hiring felons to alleviate labor shortages.”
Yet
despite these shortages as well as rising costs for some raw materials such as
oil and steel, inflationary pressures still appear subdued.
Big
picture: The Beige Book confirms what Wall Street already
knows. The U.S. has revved up since the first quarter and it’s on track to top
3% growth in the spring.
A
steadily growing economy, a shrinking pool of labor and a gradual rise in
prices all point to the Fed raising its benchmark interest-rate in June. The
central bank aims to gradually lift rates to prevent an outbreak of inflation
and keep the economy from overheating.
Market
reaction: The Dow Jones Industrial Average DJIA, +1.26% and S&P 500 SPX, +1.27% rebounded in Wednesday trades, one
day after a big selloff sparked by political turmoil in Italy that investors
worried would spread to the rest of Europe and financial markets.
The
10-year Treasury yield TMUBMUSD10Y, -0.32% rose 7 basis points to
2.85%.
$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 (2/15/2018)
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Dow
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up 599.98 points a 2.38% gain
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2/27/18
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Nasdaq
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up 181.66 points a 2.50% gain
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3/13/18
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S&P 500
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up 70.70 points a 2.59% gain
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3/13/18
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Related Link: http://www.stockmarket-direction.com/
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