Investment Commentary –April 4th, 2017

Market Indices as of Market Close April 4th, 2017
Dow 20,689 (4.75% YTD)
S&P 2,360 (5.37% YTD)
NASDAQ 5,898 (9.14% YTD)
Gold $1,258 (7.82%)
OIL ($51.17)
US 10Y Treasury 2.36 (-8.29%)
Barclay Bond Aggregate (1.08% YTD)

Earnings, Trump keep markets in check
U.S. stocks closed little changed on Tuesday, as investors stayed on the sidelines ahead of first-quarter earnings season and remained cautious over President Donald Trump’s ability to deliver on promises such as tax reform.
The Dow Jones Industrial Average .DJI rose 39.03 points, or 0.19 percent, to 20,689.24, the S&P 500 .SPX gained 1.32 points, or 0.06 percent, to 2,360.16 and the Nasdaq Composite .IXIC added 3.93 points, or 0.07 percent, to 5,898.61.

This past week’s leaders include basic materials; laggards include financials and consumer goods.

Market moving headlines
DOWNWARD STREAK: The Dow on Monday fell for the eighth daily trading session in a row, the index’s longest run of losses since 2011. Over the course of those eight days, the Dow’s total decline was 1.9%.

DOLLAR WEAKENS: The value of the U.S. dollar relative to other major currencies fell on Monday to its lowest level in four months. Analysts attributed the decline to doubts about whether the Trump administration will be able to win congressional approval for tax cuts and increased spending on infrastructure.

A LITTLE BETTER: The U.S. government revised its estimate of fourth-quarter U.S. economic growth upward from 1.9% to 2.1%. However, the new figure is still far shy of the 3.5% annual growth rate in last year’s third quarter.

INFLATION PRESSURE: Inflation in February climbed above the U.S. Federal Reserve’s long-term target rate, increasing the likelihood of further increases in interest rates. The government reported on Friday that inflation for consumer goods exceeded 2.0% for the first time since 2012.

OIL REBOUND: After slipping to around $48 in the prior week, oil prices climbed back above $50 a barrel and posted gains for four days in a row. Prices were supported by renewed commitments by major oil-producing nations to reduce oil production.

THIS DAY IN FINANCIAL HISTORY April 4rth, 1975: New Beginnings
Microsoft is founded as a partnership between Bill Gates and Paul Allen in Albuquerque, New Mexico.

On tap for the rest of the week:
Wednesday: Release of minutes from March 14–15 meeting of the U.S. Federal Reserve Board; Institute for Supply Management’s nonmanufacturing index
Friday: Monthly jobs and unemployment report, U.S. Bureau of Labor Statistics; wholesale inventories, U.S. Census Bureau; consumer credit, U.S. Federal Reserve

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.