Investment Commentary –February 21st, 2017

Market Indices as of Market Close February 21st, 2017
Dow 20,743 (3.75% YTD)
S&P 2,365 (4.38% YTD)
NASDAQ 5,865 (7.42% YTD)
Gold $1,236 (52 Week Low $1,127 High $1,387)
OIL $54.02 (52 Week Low $39.20 High $56.24)
US 10Y Treasury 2.42 (52 Week Low 1.32 High 2.64)

Dow books 8th gain in a row as stock market carves up fresh records
U.S. stocks extended their record winning streak on Tuesday, with all three equity benchmarks ending at all-time highs. The Dow Jones Industrial Average DJIA, +0.58% gained 112.82 points to 20,737.83, a rise of 0.6%. The S&P 500 SPX, +0.60% added 13.92 points, or 0.6%, to 2,365.12. The Nasdaq Composite Index COMP, +0.47% climbed 27.37 points, or 0.5%, to 5,865.95. The day’s rally was broad, with all 11 of the S&P 500’s primary sectors ending up on the day, though defensive industries – including real estate, consumer staples, and utilities – provided the biggest boost, with all three rising at least 1%. With the day’s move, the Dow rose for an eighth straight session, while both the S&P 500 and the Nasdaq posted their ninth advance of the past 10 sessions.

Carl Icahn swoops in, takes stake in Bristol-Myers Squibb
Carl Icahn has taken a stake in Bristol-Myers Squibb Co., making him the second big activist to pressure the company following disappointment in its cancer-treatment efforts.
Icahn owns a large stake and believes the New York drug giant has a good pipeline that would help make it an attractive takeover target, people familiar with the matter said. It isn’t clear how big the stake is.
On Tuesday, Bristol-Myers BMY, +0.24% announced it would add three directors to its board and buy back $2 billion in stock in a pact with another activist, Jana Partners LLC.

Pres. Harry Truman created the Office of Economic Stabilization (OES) on this day in 1946. The office was designed to watch prices and try to keep inflation down as the nation shifted from a war-time economy to a peace-time economy.

On tap for the rest of the week:
Wednesday: Release of minutes from January 31—February 1 meeting of the U.S. Federal Reserve Board; existing home sales, National Association of Realtors
Friday: Thomson Reuters/University of Michigan Index of Consumer Sentiment; new home sales, U.S. Census Bureau

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.