Investment Commentary –January 24th, 2017
Market Indices as of Market Close January 24th, 2017
Dow 19,912 (0.76% YTD)
S&P 2,280 (1.96% YTD)
NASDAQ 5,600 (4.05% YTD)
Gold $1,212 (52 Week Low $1,119 High $1,387)
OIL $53.09 (52 Week Low $38.00 High $56.24)
US 10Y Treasury 2.47 (52 Week Low 1.32 High 2.64)
S&P 500, Nasdaq hit record highs on bank, tech gains
The S&P 500 and Nasdaq touched intraday record highs on Tuesday and the Dow was poised for its best day of the year, lifted by gains in financial and technology stocks.
The advance comes as investors assess quarterly earnings reports, while trying to find more clarity on President Donald Trump’s economic policies.
Trump signed two executive orders on Tuesday to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of expanding energy infrastructure. He also met with chief executives of the Big Three U.S. automakers to push for more cars to be built in the United States.
“He is demonstrating that he is extremely business friendly, and I thought he had a good day today,” said Stephen Massocca, Chief Investment Officer, Wedbush Equity Management LLC in San Francisco.
Trump talks to U.S. automakers, pushes for new American plants
U.S. President Donald Trump urged the chief executives of the Big Three U.S. automakers on Tuesday to build more cars in the country, pressing his pledge to bring jobs to America and discourage the car industry from investing in Mexico.
Trump, who has threatened to impose 35 percent tariffs on imported vehicles, opened a White House meeting with General Motors Co CEO Mary Barra, Ford Motor Co CEO Mark Fields and Fiat Chrysler Automobiles NV CEO Sergio Marchionne saying he wants to see more auto plants in the United States.
In return, the new Republican president has vowed to cut regulations and taxes to make it more attractive for businesses to operate in the United States. He promised frequently during his election campaign to be a job-creating president and stressed that message in his inaugural speech last Friday.
On Tap for the rest of the week
Thursday: The Conference Board Leading Economic Index for the U.S.; new home sales, U.S. Census Bureau
Friday: Fourth-quarter U.S. GDP, advance estimate, U.S. Bureau of Economic Analysis; durable goods orders, U.S. Census Bureau; Thomson Reuters/University of Michigan Index of Consumer Sentiment
THIS DAY IN FINANCIAL HISTORY: January 24th, 1916 Income Tax Here To Stay
After several rulings against Federal Income Taxes the Supreme Court finally gives its blessing declaring the 16th Amendment constitutional.
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.