Financials, Tech Led US Market to Record Highs, Again

Financials, Tech Led US Market to Record Highs, Again

Financials, Tech Led US Market to Record Highs, Again

$DIA, $SPY, $QQQ, $VXX

  • Senate takes another step toward tax reform by passing budget blueprint
  • Top-weighted financials and technology sectors show relative strength

Technology and Financial stocks lifted Wall Street Friday, as investor optimism received a fresh boost from Washington, where The Trump Administration stepped closer to implementing its tax reform plan.

Bank of America (NYSE:BAC) + 1.8% and Goldman Sachs (NYSE:GS) rose 1%, trailing a rise in US Treasury yields and Apple’s (NASDAQ:AAPL) 0.8% gainer led the recovery in technology stocks.

Hopes of tax cuts have helped the continuing Trump Rally, as companies expect the move to lift economic growth and inflation.

Thursday, the US Senate approved a budget blueprint for FY  2018 that will pave the way for Republicans to pursue a tax-cut package without Democratic support.

It a positive and has added to the sentiment. Any legislative action that promotes economic growth, clearly will be additive to not only sentiment but earnings.

Q-3 earnings season is under way and 183 S&P 500 companies are expected to report earnings next week. So far more than 70% of the 88 S&P 500 companies have beat profit expectations.

7 of the 11 major S&P Sector Indexes were higher, led by a 0.89% gainer in the financial index.

Friday, the US major stock market indexes finished at: DJIA +165.59 at 23328.63, NAS Comp +23.99 at 6629.05, S&P 500 +13.11 at 2575.21

Volume: Trade on the NYSE came in at: 900-M/shares exchanged

  • NAS Comp +23.2% YTD
  • DJIA +18.0% YTD
  • S&P 500 +15.0% YTD
  • Russell 2000 +11.2% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.58) Very Bullish (0.56) Very Bullish (0.67) Very Bullish (0.50)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.52) Very Bullish (0.54) Very Bullish (0.60) Bullish (0.42)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.32) Bullish (0.37) Neutral (0.19) Bullish (0.40)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.38) Bearish (-0.38) Bearish (-0.35) Bearish (-0.39)

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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