The Nasdaq crossed the 6,000 mark and is up over 12 percent in 2017! Tepid data came in last week but the stock market still surged. A positive outlook in the business community, potential middle class tax cuts and business friendly tax policy proposals seem to be driving the stock market thus far in 2017.
Potential, proposals and outlook eventually must step aside for reality and results. If the Trump administration is successful repealing and replacing the Affordable Care Act and implementing lower corporate and personal tax rates, then we may see very strong stock market growth.
Consumer Confidence Dips Slightly
The University of Michigan and Conference Board consumer confidence indices descended a little last month, but remained in great shape. The CB index displayed an April reading of 120.6, down from 124.9 in March. Slipping a point from its initial April mark, the Michigan barometer fell to 97.0.1
Latest Housing Data Is Mostly Positive
New home sales rose 5.8 percent in March, the Census Bureau noted last week; headline sales were 15.6 percent improved from a year earlier. The latest 20-city S&P/Case-Shiller home price index (January) showed 5.8 percent average yearly house price appreciation, up from 5.6 percent in December. Pending home sales retreated 0.8 percent in March, the National Association of Realtors reported.1,2
First Quarter Saw Little Economic Growth
According to the Bureau of Economic Analysis, America’s economy expanded at a pace of 0.7 percent in Q1, well below the 2.1 percent growth seen in Q4. Economists polled by MarketWatch had projected a 0.8 percent Q1 GDP reading.1
NASDAQ Posts Sixth Winning Month In A Row
The tech benchmark added 2.32 percent this past week and 2.30 percent for April, shattering the 6,000 ceiling in the process. Upbeat earnings news and talk of corporate tax cuts also aided the S&P 500 – that index rose 0.91 percent for April, capping things off with a 1.51 percent weekly gain. How did the blue chips perform? The Dow advanced 1.34 percent on the month and 1.91% during April’s last five trading sessions. Friday, the big three settled like so: Dow, 20,940.51; Nasdaq, 6,047.61; S&P, 2,384.20.3,4
Monday, investors study March personal spending figures, ISM’s April factory PMI and earnings from Edison International. Earnings announcements from Altria, Anadarko Petroleum, Apple, ConocoPhillips, Cummins, Gilead Sciences, Hilton Worldwide, MasterCard, Merck, PG&E, Pfizer and Twenty-First Century Fox appear Tuesday. Wednesday, the Street considers the latest Federal Reserve policy statement, ISM’s March service sector index, the April ADP payrolls report and earnings from Alibaba, Allstate, Estee Lauder, Facebook, Humana, Kraft Heinz, MetLife, Prudential Financial, Tesla, Time Warner and Yum! Brands. Thursday offers a new Challenger job-cut report, initial jobless claims numbers and earnings from Activision Blizzard, Anheuser-Busch, Berkshire Hathaway, Occidental Petroleum and Viacom. March employment figures are out Friday, along with earnings from Cigna; also, Federal Reserve chair Janet Yellen speaks at Brown University in Rhode Island.
|% CHANGE||YTD||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||5/5 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.37%||0.12%||-0.30%||2.25%|
Sources: wsj.com, bigcharts.com, treasury.gov – 4/28/174,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
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- 1 – marketwatch.com/economy-politics/calendars/economic [4/28/17]
- 2 – blogs.barrons.com/incomeinvesting/2017/04/25/new-home-sales-move-into-higher-gear/ [4/28/17]
- 3 – marketwatch.com/story/us-stocks-face-a-muted-start-even-as-amazon-alphabet-get-set-to-roar-2017-04-28/ [4/28/17]
- 4 – markets.wsj.com/us [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
- 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
- 6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/28/17]
- 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/28/17]