Trump Rally Extends, ‘Sidelined’ Money Coming Back In
$DIA, $SPY, $QQQ, $VXX
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)|