PPI Came in ‘Hot’, Traders Shrug it Off, Market Soars

PPI Came in ‘Hot’, Traders Shrug it Off, Market Soars

PPI Came in ‘Hot’, Traders Shrug it Off, Market Soars

$DIA, $SPY, $QQQ, $VXX

Thursday, Wall Street marked it 5th session running of gains, led technology stocks as investors shrugged off inflation worries that may have roiled the markets early this month.

Traders shrugged off economic data for a 2nd consecutive session that indicated inflation pressures were building, as weekly jobless claims data Thursday pointed to a tightening labor market.

Investors focused on strong Quarterly earnings and expectations that more earnings growth is yet to come, thanks to President Trump’s newly-implemented corporate and personal tax cuts.

Trader’s eyes were fixed on the PPI number Thursday morning, it came in a little Hot. But much like yesterday when the CPI came in Hot, the market shook it off too.

Following many forecast increases by corporations in recent weeks, analysts on average now expect S&P 500 companies to increase their EPS (earnings per share) in Y 2018 by 18.9%, according to Thomson Reuters I/B/E/S.

Wall Street investors were not alone in their optimism. Bullish sentiment among individual investors hit its highest level since mid-January in the American Association of Individual Investors’ weekly survey.

Thursday, the major US stock market indexes finished at: DJIA+306.88 at 25200.37, NAS Comp +112.81 at 7256.42, S&P 500 +32.57 at 2731.20

Volume: Trade on the NYSE came in at: 826-M/shares exchanged

  • NAS Comp +5.1% YTD
  • S&P 500 +2.2% YTD
  • DJIA +2.0% YTD
  • Russell 2000 +0.1% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
15 February 2018 QQQ 165.13 Neutral (0.22) 164.03 169.58
15 February 2018 DIA 252.09 Neutral (0.14) 249.24 255.37
15 February 2018 SPY 272.42 Neutral (0.11) 271.42 275.52

Stay tuned…

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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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