The Trump Bull Market Rally ‘Rages’

The Trump Bull Market Rally ‘Rages’

The Trump Bull Market Rally ‘Rages’

$DIA, $SPY, $QQQ, $VXX

Wall Street continued The Trump Rally Friday with record closing highs as Q-4 earnings season kicked off with solid results from banks and strong retail sales drove investor optimism about US economic growth.

The S&P 500 is enjoying its best 10-day start to a year since Y 2003.

JPMorgan (NYSE:JPM), the biggest US lender by assets, said a US tax overhaul would help future profits by reducing its tax bill and stimulating more business. The bank’s shares rose more than 1%

The fact all the big money center banks beat on the bottom line is a good omen for the rest of the earnings season.

BlackRock rose 3%. The world’s largest asset manager reported profit that beat estimates as investors flooded into the relatively low-cost funds.

While Wells Fargo (NYSE:WFC) earnings beat expectations, its shares slipped 0.8% after it set aside $3.25-B in Q-4 to cover legal expenses related to probes into its mortgage and sales practices.

The S&P consumer discretionary index jumped 1.2% after an increase in retail sales showed households bought more goods, suggesting the economy exited Y  2017 with strong momentum.

Bank stocks were also helped by a rise in Treasury yields after underlying US consumer prices for December posted the biggest gainer in 11 months, signaling a pickup in inflation.

Earnings for S&P 500 companies are expected to increase on an average by 12.1% in the Quarter, with profit for financial services companies likely to increase 13.2%, according to Thomson Reuters I/B/E/S.

Friday, the major US stock market indexes finished at: DJIA +228.46 at 25803.19, NAS Comp +49.28 at 7261.06, S&P 500 +18.68 at 2786.24

Volume: Trade on the NYSE came in at: 875-M/shares exchanged

Breadth: Advancers outnumbered decliners on the NYSE by a 1.11-to-1 ratio; on the NAS, a 1.45-to-1 ratio favored advancers.

  • NAS Comp: +5.2% YTD
  • DJIA: +4.4% YTD
  • S&P 500: +4.2% YTD
  • Russell 2000: +3.7% YTD

Overall the US stock market is Very Bullish across the board.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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