Wall Street’s Longest Winning Streak Since 2013!
The engines on Wall Street continued working yesterday and pushed indexes into new and uncharted territory on Wednesday, the S&P 500 wrapping up a 7-day winning streak supported by another round of robust economic figures and continued optimism that President Trump will cut taxes. A sharper than expected rise in retail chain sales and in the Consumer Confidence Index bolstered assurances that the economy is expanding at a solid pace on the heels of the strongest quarter of earnings growth that America has seen in the last two years.
In his meeting with top retail CEOs, Trump said yesterday that he would lower taxes significantly, reinforcing the campaign promise reiterated last week. Optimism that lower taxes, streamlined regulation and increased infrastructure spending targeting economic stimulus are the 3 catalysts that have pushed indexes to a series of new highs. The S&P 500 has now recorded its longest winning streak since September 2013 – and that’s despite the fact that some investors are concerned that Trump still hasn’t provided enough detail about his tax cut initiative.
Fed Reserve Chairwoman, Janet Yellen, in the second day of her congressional testimony, continued on the same tack taken on Tuesday, i.e. clearly stating that the central bank is on track to hike rates in one of its coming policy meetings. A year ago, if Janet Yellen had made a declaration the like of yesterday’s, the market would have gone haywire seeing that fundamentals back then had been rather weak. At this stage of the game, a rate hike wouldn’t give investors a shakeup seeing that they have ample confidence in fundamentals.
In summary for the day, the Dow Jones rose 0.52%, the S&P 500 tacking on 0.50%, and the NASDAQ, 0.64%.
The Q4 earnings reports of S&P 500 companies recorded growth of 7.2%, notching off the strongest expansion since Q3 2014. Analysts now expect S&P 500 earnings to grow 10.7% in Q1 2017.
One of the stocks that stood out in yesterday’s trading was Procter & Gamble (PG) which soared 3.71% to a two year high, giving both the Dow Jones and the S&P 500 their biggest push, after the Trian Fund disclosed significant holdings in the company, a fact that could pressure it to cut costs and slash low growth units.
The pharmaceutical company, Teva (TEVA) soared 5.6%, putting together gains, on aggregate, of over 14% over the last few trading days, after the stock had collapsed over 50% last year and hitting valuations that invariably beckoned value investors.
The airline companies, UAL, AAL, and DAL, each soared between 2%-4% after Warren Buffett announced that Berkshire’s holdings in each had reached $2.1 billion.
On the S&P 500, 80 stocks rose to new 52-week highs, 2 dipping to new yearly lows; on the NASDAQ, 156 stocks recorded new 52-week highs, 27 falling to new yearly lows.
About 7 billion shares changed hands on U.S. exchanges, above the 6.8 billion average over the last 20 trading days.
Thursday: Traders will continue following economic figures in order to see whether they continue to paint a positive picture of the economy and whether they’re in line with the Fed’s intents to hike rates by mid-year if not sooner. Yellen was very clear in her 2-day testimony that economic figures matter – and that monetary policy needs to move in lockstep with the stronger economy taking root.
Today’s economic figures will include initial unemployment claims, housing starts and the Philadelphia Fed Manufacturing Sector, all at 8:30 N.Y. time. Likewise, a number of companies will be reporting their latest financial figures, including DF and GNC before opening. After closing, be primed for the financial reports of TRUE and WBMD.
Thursday’s Hot Stocks: TRIP, MOH, CSCO, KHC, DF, NTAP, MGM
Have a great trading day!
|Wednesday||10:00||NAHB Housing Market Index||68||Medium|
|RYAAY||Ryanair Holdings plc||AM||Monday|
|TEVA||Teva Pharmaceutical Industries Limited||AM||Monday|
|VNO||Vornado Realty Trust||PM||Monday|
|NBL||Noble Energy, Inc.||PM||Monday|
|DISCA||Discovery Communications, Inc.||AM||Tuesday|
|DPS||Dr Pepper Snapple Group, Inc.||AM||Tuesday|
|Q||Quintiles IMS Holdings, Inc.||AM||Tuesday|
|TMUS||T-Mobile US, Inc.||AM||Tuesday|
|TAP||Molson Coors Brewing Company||AM||Tuesday|
|DVN||Devon Energy Corporation||PM||Tuesday|
|ESRX||Express Scripts Holding Company||PM||Tuesday|
|A||Agilent Technologies, Inc.||PM||Tuesday|
|AIG||American International Group, Inc.||PM||Tuesday|
|ADI||Analog Devices, Inc.||AM||Wednesday|
|WMB||The Williams Companies, Inc.||PM||Wednesday|
|LBTYK||Liberty Global plc||PM||Wednesday|
|LBTYA||Liberty Global plc||AM||Wednesday|
|AMAT||Applied Materials, Inc.||PM||Wednesday|
|MAR||Marriott International, Inc.||PM||Wednesday|
|MRO||Marathon Oil Corporation||PM||Wednesday|
|CSCO||Cisco Systems, Inc.||PM||Wednesday|
|KHC||The Kraft Heinz Company||PM||Wednesday|
|MGM||MGM Resorts International||AM||Thursday|
|WM||Waste Management, Inc.||AM||Thursday|
|ALXN||Alexion Pharmaceuticals, Inc.||AM||Thursday|
|ED||Consolidated Edison, Inc.||PM||Thursday|
|DLR||Digital Realty Trust, Inc.||PM||Thursday|
|CPB||Campbell Soup Company||AM||Friday|
|SJM||The J. M. Smucker Company||AM||Friday|
|DE||Deere & Company||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing