Stocks Continue Rally on Improved Sentiment, Trade Optimism

Stocks Continue Rally on Improved Sentiment, Trade Optimism


  • US and China pare trade differences, talks extend
  • Improved investor sentiment helps lift stocks
  • S&P 500 rally extends, up for 5th time in last 6 sessions

From The Street

JPMorgan Chase Chairman and CEO Jamie Dimon sees “decent growth” this year and said the recent stock-market plunge was an overreaction.

“I think markets are overreacting to short-term sentiment around a whole bunch of complex issues,” Mr. Dimon said in a TV interview Tuesday.

He interpreted the market moves as a “rational response” to slower growth and the US-China trade dispute.

“My view is that the consumer is in good shape and is continuing to grow, and they have back-winds with jobs and wages going up,” Mr. Dimon said, adding that consumers were paying back credit-card debts.

“I think you are going to have decent growth in 2019 in America,” Mr. Dimon said. “Therefore sentiment might reverse course at some point in the future.”

Mr. Dimon said that partisan politics is what’s preventing America from further economic growth and reaching its full potential.

Reviewing Tuesday’s economic data

  • The NFIB Small Business Optimism Index for December decreased to 104.4 from the prior reading of 104.8 in November
  • The November Job Openings and Labor Turnover Survey (JOLTS) showed that job openings decreased to 6.888-M from a revised 7.131-M (from 7.079-M) in October
  • Total outstanding consumer credit increased by $22.2-B in November after increasing a downwardly revised $24.9-B (from $25.4-B) in October.
    • The Key takeaway from the report is that the healthy expansion in consumer credit is a good portent for consumer spending activity when matched with good feelings about job security and income growth.

Tuesday, the major US stock market indexes came in at: DJIA +256.10 at 23787.45, NAS Comp +73.53 at 6897.01, S&P 500 +24.72 at 2574.37

Volume: Trade on the NYSE came in at 1-B/shares exchanged

  • Russell 2000 +5.8% YTD
  • NAS Comp +3.9% YTD
  • S&P 500 +2.7% YTD
  • DJIA +2.0% YTD

HeffX-LTN’s overall technical analysis of the major US stock market indexes is Neutral

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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