Friends
Stocks had a nice day, but were having even a nicer day (Dow up about 194 points) until a couple of fresh political headlines hit the tape. This is the investment world in which we live now. At any moment a headline can appear that jolts the trading community. Yes, it appears that the headlines have little lasting effect, but in the short term they can get one’s attention. What is interesting is how well stocks rebounded after Wednesday’s carnage. We’ll see if it continues next week.
For the day, the Dow Jones Industrial Average was up 141 points to close at 20,804. The S&P 500 was up 16 points to finish the day at 2,381. Gold was up $2 to trade at $1,255 per ounce, while oil was up $.97 to trade at $50.32 per barrel WTI.
If, just for a moment, we could focus on something other than politics, we find that the just concluded earnings season saw about a 10% rise in corporate earnings. First quarter GDP was disappointing, but compared to the first quarter of 2015 or 2016 it wasn’t bad. The backdrop for stocks, other than politics, appears to be sound, but once again the bond market is telling a different story. The tug of war continues between the economic bears that populate the bond market and the bulls that roam the stock market. Let’s see what next week has in store for us.
Have a great weekend everyone.
