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.