Comey’s Testimony: “Still Born”, DJIA Marks Record Highs

Comey’s Testimony: “Still Born”, DJIA Marks Record Highs

Comey’s Testimony: “Still Born”, DJIA Marks Record Highs

$DIA, $SPY, $QQQ, $VXX

US stocks were higher in early afternoon trading Thursday after sacked FBI Director James Comey’s testimony was seen by investors as yielding nothing that could affect Donald Trump’s Presidency.

The DJIA earlier hit an intra-day record and continued to climb and settled back on some profit taking.

Participants were concerned that any major revelation by Mr. Comey could dampen the momentum for President Trump’s agenda of lower taxes and lax regulations.

Bets that President Trump can implement his agenda are largely behind a rally that has taken stock indexes to record highs since his election.

“I think the market is taking less of an alarmist review of this situation because there is no smoking gun here. So it is not particularly impactful for thinking about … Trump’s economic agenda to go through,” said a money market economist at Jefferies & Co in New York.

Also, Thursday, the ECB signaled no further interest rate cuts as Eurozone prospects improved, but said subdued inflation meant it would continue to pump more stimulus into the region’s economy.

Investors now await the results of the UK general election.

Opinion polls show Theresa May’s Conservative Party leading between 5 and 12% over the main opposition Labour Party, suggesting she would increase her majority.

The market cares because if Theresa May loses the majority that would be disruptive of the Brexit process. We wait, we see.

Thursday, the US major stock market indexes finished at:

Volume: Trade was moderate on the NYSE, with 910.6-M/shares exchanged.

  • NAS Comp +17.4% YTD
  • S&P 500 +8.7% YTD
  • DJIA +7.2% YTD
  • Russell 2000 +4.3% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.36) Neutral (0.14) Bullish (0.42) Very Bullish (0.51)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.25) Bullish (0.31) Neutral (0.19) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.49) Bullish (0.44) Bullish (0.44) Very Bullish (0.58)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.28) Bearish (-0.29) Bearish (-0.27) Bearish (-0.29)

Stay tuned…

 

 

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