Stocks cautiously ended the first full week of the Donald Trump presidency just as Mr. Trump unveiled his most audacious edict via executive order, barring immigration from countries embroiled in the throes of radical Islam such as Syria, Iraq, Yemen and four others.
While market participants have been somewhat encouraged by a number of first-week moves made by the new president, the promised immigration shutdown may have more implication globally than anybody may have wished. Stocks finished mixed in a week which witness a number of new all-time highs, particularly the Dow, which surpassed and held above the 20,000 level for the first time ever.
At the Close 1.27.16:
Dow: 20,093.78, -7.13 (-0.04%)
NASDAQ: 5,660.78, +5.61 (0.10%)
S&P 500: 2,294.69, -1.99 (-0.09%)
NYSE Composite: 11,283.19, -29.93 (-0.26)
On the week, all major indices sported gains, led by the NASDAQ and Dow Industrials, though the ramifications from the immigration ban were yet to be fully appreciated. As markets set to open in the US on Monday, futures indicated a negative open while markets around the world were suffering significant losses despite China and Hong Kong markets being closed all week for the Lunar New Year holiday. The tenor of trading suggests that markets may not be going along for the protectionist ride that the Trump administration has in mind. "America First" may well turn out to be the death knell for globalization, but the results of such radical policy changes is sure to increase market volatility, which, to this point has been benign.
For the week:
Dow: +266.53 (+1.34%)
NASDAQ: +105.45 (+1.90%)
S&P 500: +23.38 (+1.03%)
NYSE Composite: +90.39 (+0.81%)
Monday, January 30, 2017
Friday, January 27, 2017
Dow Higher, All Other Indices Lower?
“If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at your mercy.”― John Maynard Keynes
If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.-- J. Paul Getty
At The Close 1.26.17:
Dow: 20,100.91, +32.40 (0.16%)
NASDAQ: 5,655.18, -1.16 (-0.02%)
S&P 500: 2,296.68, -1.69 (-0.07%)
NYSE Composite: 11,313.13, -25.92 (-0.23%)
Wednesday, January 25, 2017
At Last! Dow Shatters 20,000 Mark; S&P 500, NASDAQ Also At Record Highs
No comment necessary since the topic of the Dow Jones Industrial Average breaking beyond 20,000 has been predicted, speculated upon, and beaten to death for more than a month running.
Incidentally, the S&P and NASDAQ also closed at record all-time highs.
The only question: will it hold?
Those of us who remember Dow 10,000 may recall that level being crossed some 57 times before finally moving on, so some back-and-forth is to be expected.
At the Close 1.25.17:
Dow: 20,068.51, +155.80 (0.78%)
NASDAQ: 5,656.34, +55.38 (0.99%)
S&P 500: 2,298.37, +18.30 (0.80%)
NYSE Composite: 11,342.70, +93.42 (0.83%)
Incidentally, the S&P and NASDAQ also closed at record all-time highs.
The only question: will it hold?
Those of us who remember Dow 10,000 may recall that level being crossed some 57 times before finally moving on, so some back-and-forth is to be expected.
At the Close 1.25.17:
Dow: 20,068.51, +155.80 (0.78%)
NASDAQ: 5,656.34, +55.38 (0.99%)
S&P 500: 2,298.37, +18.30 (0.80%)
NYSE Composite: 11,342.70, +93.42 (0.83%)
Tuesday, January 24, 2017
Yo-yo Stock Trading Continues; Dow Trading In Worst Rut Of 115 Years
Spurred by Democrat proposals for a $1 Trillion infrastructure spending bill, stocks took the high road, with the S&P 500 and NASDAQ each making new all-time highs. As has been the case of late, the Dow Industrials proved the laggards, not making new highs, but once again closing in on the mythical 20,000 level.
The Dow is now in a trading rut that happens to be the longest, smallest trading range since 1990. That's a long time, so it's going to break one way or the other. Tomorrow may prove to be the day it goes over 20,000, or not. As long as President Trump and congress continue to lay groundwork on a vast variety of programs and possible legislative agendas, the stock markets (which, as we've been told, hate uncertainty) will likely continue to bob and weave like lightweights.
The move higher today for the indices was led by basic material and energy stocks, in sympathy for President Trump's executive action to resume work on the troubled Keystone pipeline, a project that figures to be bullish for companies such as ExxonMobil and Chevron.
Still, since mid-December, the Dow has gone... nowhere, a condition that should not be able to persist much longer.
Or can it?
At the Close 1.24.17:
Dow: 19,912.71, +112.86 (0.57%)
NASDAQ: 5,600.96, +48.01 (0.86%)
S&P 500: 2,280.07, +14.87 (0.66%)
NYSE Composite: 11,249.29, +78.67 (0.70%)
The Dow is now in a trading rut that happens to be the longest, smallest trading range since 1990. That's a long time, so it's going to break one way or the other. Tomorrow may prove to be the day it goes over 20,000, or not. As long as President Trump and congress continue to lay groundwork on a vast variety of programs and possible legislative agendas, the stock markets (which, as we've been told, hate uncertainty) will likely continue to bob and weave like lightweights.
The move higher today for the indices was led by basic material and energy stocks, in sympathy for President Trump's executive action to resume work on the troubled Keystone pipeline, a project that figures to be bullish for companies such as ExxonMobil and Chevron.
Still, since mid-December, the Dow has gone... nowhere, a condition that should not be able to persist much longer.
Or can it?
At the Close 1.24.17:
Dow: 19,912.71, +112.86 (0.57%)
NASDAQ: 5,600.96, +48.01 (0.86%)
S&P 500: 2,280.07, +14.87 (0.66%)
NYSE Composite: 11,249.29, +78.67 (0.70%)
Monday, January 23, 2017
Trump Presidency Day One Sends Stocks Lower; Bonds, Precious Metals Up
Recall how everything was up on Friday, the day Donald Trump was sworn in as the 45th president of the United States?
Maybe it was a sugar high, market enthusiasm over the new faces in Washington, or just plain old vanilla speculation. Whatever it was, it certainly faded fast, as Monday, Trump's first full weekday as president saw markets getting closer and closer to a point of no return, at one point near midday having erased all of Friday's gains.
Fortunately for those of the bullish persuasion stocks held their own and finished with only minor losses. Oil was lower as well, though only marginally. In their places were some of the usual suspects from the other side of the trade; gold, silver, bonds, all rallied nicely. Gold continues to be the top asset performer for 2017, a welcome respite after three years of declines and a 2016 that saw it bounce nicely higher in the firt half of the year only to give back those gains in the second half, like a football team with a tiring defense.
As for the new president, he was busy. In the morning, President Trump met with business leaders and told them he'd like to roll back as much as 75% of existing regulations, most of them causing unnecessary reporting and tax burdens on businesses of all sizes.
Trump also signed three executive orders. One imposes a federal hiring freeze on all departments except the military, another pulled the US out of the Trans-Pacific Partnership (TPP), and the third re-imposed the so-called Mexico City Policy, outlawing funding of international organizations which promote abortion.
Previously, on Friday, when the President finally made his way to the Oval Office, he kept a campaign promise by signing an executive order that directs federal agencies to ease the “regulatory burdens” of ObamaCare. It orders agencies to “waive, defer, grant exemptions from, or delay the implementation of any provision or requirement” of ObamaCare that imposes a “fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.”
One would think that the order covered just about everything, making ObamaCare a ruined piece of legislation, soon to be formally repealed.
There was also movement on clearing the way for confirmation of any number of the President's cabinet choices and more speculation on whether the congress would approve a tax overhaul suggested by Trump during the campaign. The changes are still off in the distance, but congress should be getting on with it as soon as the foot-dragging over cabinet nominees ends.
Use the calculator below to see how Trump's tax plan would affect you:
At The Close 1.23.17:
Dow: 19,799.85, -27.40 (-0.14%)
NASDAQ: 5,552.94, -2.39 (-0.04%)
S&P 500: 2,265.20, -6.11 (-0.27%)
NYSE Composite: 11,170.63, -22.16 (-0.20%)
Maybe it was a sugar high, market enthusiasm over the new faces in Washington, or just plain old vanilla speculation. Whatever it was, it certainly faded fast, as Monday, Trump's first full weekday as president saw markets getting closer and closer to a point of no return, at one point near midday having erased all of Friday's gains.
Fortunately for those of the bullish persuasion stocks held their own and finished with only minor losses. Oil was lower as well, though only marginally. In their places were some of the usual suspects from the other side of the trade; gold, silver, bonds, all rallied nicely. Gold continues to be the top asset performer for 2017, a welcome respite after three years of declines and a 2016 that saw it bounce nicely higher in the firt half of the year only to give back those gains in the second half, like a football team with a tiring defense.
As for the new president, he was busy. In the morning, President Trump met with business leaders and told them he'd like to roll back as much as 75% of existing regulations, most of them causing unnecessary reporting and tax burdens on businesses of all sizes.
Trump also signed three executive orders. One imposes a federal hiring freeze on all departments except the military, another pulled the US out of the Trans-Pacific Partnership (TPP), and the third re-imposed the so-called Mexico City Policy, outlawing funding of international organizations which promote abortion.
Previously, on Friday, when the President finally made his way to the Oval Office, he kept a campaign promise by signing an executive order that directs federal agencies to ease the “regulatory burdens” of ObamaCare. It orders agencies to “waive, defer, grant exemptions from, or delay the implementation of any provision or requirement” of ObamaCare that imposes a “fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.”
One would think that the order covered just about everything, making ObamaCare a ruined piece of legislation, soon to be formally repealed.
There was also movement on clearing the way for confirmation of any number of the President's cabinet choices and more speculation on whether the congress would approve a tax overhaul suggested by Trump during the campaign. The changes are still off in the distance, but congress should be getting on with it as soon as the foot-dragging over cabinet nominees ends.
Use the calculator below to see how Trump's tax plan would affect you:
At The Close 1.23.17:
Dow: 19,799.85, -27.40 (-0.14%)
NASDAQ: 5,552.94, -2.39 (-0.04%)
S&P 500: 2,265.20, -6.11 (-0.27%)
NYSE Composite: 11,170.63, -22.16 (-0.20%)
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