Booming market ends week high And The Week Ahead
The Stock Market And The Week Ahead
As Q4 earnings were reported, there were mixed sentiments amongst people. The revenue momentum for Q4 remained positive and very strong. There were above average surprises and very unusual revisions for the existing and upcoming quarters.
The total earnings for the quarter for 89 S&P 500 members reported an increase of 8.6 percent from the same period last year, reporting 7.7% in higher revenues. The earnings beat the EPS estimates and revenue estimates as well.
Companies have generally announced big one time charges to the new tax law changes. As a whole, the total earnings for the S&P 500 index (INDEXCBOE: .INX) are expected to rise by 10.8 percent from the same time last year, an increase of 7.3 percent in higher revenues. There are double digits expected in the Energy, Technology, Basic materials and other sectors. The energy sector also reported high increases, about 26.1 percent in higher revenues.
There was also a positive momentum in the US durable goods orders, which reported a high in sales and revenue compared to the last year. Overall, the sentiment in the US stock market also remained positive, as the Dow Jones industrial (INDEXDJX: .DJI), Nasdaq (INDEXNASDAQ: .IXIC) and S&P 500 (INDEXCBOE: .INX) all showed significant increases. While the small cap S&P 600 index (INDEXSP: SP600) also reported a rise, it can be said that this quarter and Friday seemed to be one of the most beneficial for stock holders. There were record highs recorded in the stock market, which shows that this week has ended on a positive note.
What can we expect from the market next week is another tricky question. Can we expect it to be too high or is it going to be too low? Well, the answer depends on certain key factors. The sentiment for the market might remain positive as it has ended on a positive note, it will start on a positive note as well. However, Q4 earnings were just in and the sentiment generally remained positive. It can be believed that some factors might send the stock market down during the start of the coming week but other factors could bring it up as the week progresses.