Investment Commentary –January 2nd, 2018

Market Indices as of Market Close January 2nd, 2018 (With 2017 Percentage totals)
Dow 24,824 (28.11%)
S&P 2,695 (21.83%)
NASDAQ 7,006 (28.24%)
Global DOW 3,113 (23.15%)
Gold $1,319 12.05%)
OIL $60.37 (4.60%)
US 10Y Treasury 2.46 (1.26%)
Barclay Bond Aggregate (3.54%)

S&P 500, Nasdaq end at records in first trading day of 2018; chipmakers boost tech shares

U.S. stocks kicked off 2018 on a positive note Tuesday, with major indexes rallying to record levels in a broad rally that saw five of the 11 primary sectors gaining more than 1% on the day.
The energy sector was a particular outperformer, jumping 1.8%, while both consumer discretionary and material names were up 1.5%. Technology stocks, the best-performing sector of 2017, extended their advance by rising 1.4%, a rally that helped give the Nasdaq its biggest one-day percentage rise since Nov. 16.

News around the web:

Retailers enjoy a bump

U.S. retail spending was up 4.9% compared to 2016, according to a Mastercard Spending Pulse report. The biggest gainers for the year included electronics and appliances, jewelry, and home furnishings and home improvement.

Oil prices rise as volatility subsides

Oil prices closed out the year at over $60 a barrel (WTI crude), climbing from $52 a barrel at the close of 2016. Volatility has remained calm since OPEC and its non-OPEC partners agreed to limit production late in 2016.

Tax reform fallout

Thousands of homeowners in high property tax locations—including areas of New York, California, New Jersey, and Connecticut—tried to prepay their 2018 property taxes, since the new tax reform law caps the deduction at $10,000. However, new guidance from the IRS during the week warned that the maneuver would only be allowed for properties with pre-2018 assessments.

On tap this week:

Monthly jobs and unemployment, U.S. Bureau of Labor Statistics


This day in financial history: January 2, 1882 Standard Oil Trust
John D. Rockefeller merged his company with oil affiliates to become the Standard Oil Trust, the nation’s first authorized monopoly.

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.