Friday’s Stock Market And What To Expect Next ?
On Friday, the benchmarks closed higher mostly following a wave of strong corporate earnings from Caterpillar and 3M. Dow gained 140.7 points and was successful in hitting a fresh record close. The S&P 500 also gained 1.7 points to the end staying in the safe area while Nasdaq finished in the red. After the company reported of its sound fourth-quarter 2017 results with the vigorous increase in adjusted revenues, shares of 3M surged 1.9%. Out of the 11 major segments of S&P 500 six have ended in the positive territory with both healthcare and utilities leading. The expectations of strong corporate earnings were maintained quite well.
Trump while speaking to an interview to CNBC has said that dollar would continue to get stronger under his administration. ECB has finally opted to leave the interest rates unchanged at 0%.
Important events are to take place in the week ahead. The stock market shall keep up with its record-setting run as the month end is approaching. So far S&P 500 is already right on track with 7.2% gain in January so far which happens to be its best gain since October 2015. January could be the 10th month of gains for both S&P 500 and Dow if positive.
Those who have invested in stock shall have their attention focused on number of events which includes a flood of earnings which has been predicted by the experts of the tech industry in the coming week. And President Donald Trump’s State of Union address and his expected promise of a massive infrastructure plan. Plenty of economic news and rush of earnings are expected in the week ahead.
Major data releases are expected to surface in the coming week. Julian Emanuel the chief equity and derivative strategist at BTIG stated that there are predictions of tens of billions of dollars for buying bonds and selling stocks. There could be a possibility of asset allocation trade going on at the moment.
Moreover, the Fed is anticipated to keep the interest rates steady Wednesday in the final meeting before Chair Janet Yellen takes leave at the end of the week and Fed governor Jerome Powell takes the chairmanship. It is expected that the Fed shall raise rates again in March.