Trump Rally Extends, ‘Sidelined’ Money Coming Back In

Trump Rally Extends, ‘Sidelined’ Money Coming Back In

Trump Rally Extends, ‘Sidelined’ Money Coming Back In


All 3 indexes posted all-time highs, and all 11 major S&P sectors finished higher on the day

US stocks rose to new record highs Tuesday, boosted by strong earnings reports from Wal-Mart and other retailers and continued optimism about the economic agenda of President Donald Trump.

Wal-Mart’s shares were the top stock in the DJIA, rising 3.3% after the world’s largest retailer reported higher-than-expected US sales.

More than 1 in each 6 stocks on the S&P 500 hit a new 52-wk high as a post-Election Trump Rally extended.

The benchmark index has climbed more than 10% since Donald Trump’s November 8th election, fueled by the promise of tax reforms, reduced regulations and increased infrastructure spending.

The S&P is trading at 17.8Xearnings estimates for the next 12 months, above the long-term average of 15X, according to Thomson Reuters Datastream.

There is no doubt that this market has become over-extended and is due for a pullback, but when you have this kind of momentum, it is very hard to sit on the sidelines.

Aside from Wal-Mart, shares of department store operator Macy’s (NYSE:M) and home improvement chain Home Depot (NYSE:HD) rose after their Quarterly reports.

Overall profit for S&P 500 companies is estimated to have risen 7.5% in Q-4, Thomson Reuters I/B/E/S said in a report last Friday.

Tuesday, the major US stock market indexes finished at: DJIA +118.95 at 20743.00, NAS Comp +27.37 at 5865.97, S&P 500+14.22 at 2365.38

Volume: Trade on the NYSE came in at 1.06-B/shrs.

  • NAS Comp +9.0% YTD
  • S&P 500 +5.7% YTD
  • DJIA +5.0% YTD
  • Russell 2000 +3.9% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.26) Neutral (0.10) Bullish (0.31) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.38) Bullish (0.38) Bullish (0.48) Bullish (0.29)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.63) Very Bullish (0.63) Very Bullish (0.69) Very Bullish (0.58)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.25) Neutral (-0.22) Bearish (-0.49) Neutral (-0.03)

Stay tuned…



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