Stocks Poised For Sizeable Weekly Gain
Stocks closed mixed yesterday, but are on pace for a sizeable weekly gain.
There was nothing new yesterday in the way of market moving headlines. Yes, the U.K. voted to delay Brexit. But we already knew that was going to happen. (No impact on the market.) Yes, the Senate voted against the President's border emergency. But again, we already knew that was going to happen as well. Same for the President's subsequent veto when it's sent to him. (Again, no impact on the market.) And yes, we heard yesterday that President Trump and President Xi probably won't meet until April. Both sides still sound optimistic that a deal will get done in spite of existing differences. But pretty much the same stuff we've been hearing for weeks. (And again, no impact on the market.)
For now, the market seems to be focusing on the strong economy, fantastic jobs market, an accommodative Fed, and the continued optimism for an eventual U.S.-China trade deal.
One thing that was interesting though was President Trump saying that he was willing to hit the EU with tariffs if they cannot break through their trade talk impasse. These were not new sentiments, as he's said this before. But it was interesting to hear given the as of yet concluded U.S.-China trade talks. (But again, no impact on the markets.)
In other news, the Weekly Jobless Claims were up a bit, increasing by 6,000 to 229,000. But analysts note that the low and steady numbers point to continued strength in the labor market.
And today we'll get a bevy of economic reports beginning with the Empire State Manufacturing Survey, then Industrial Production, Consumer Sentiment, and the Job Openings and Labor Turnover Survey report (or JOLTS).
It's also Quadruple Witching (expirations for index futures, stock index options, stock options, and single stock futures), so there may be some extra volatility.
In the meantime, the market looks great. And could be getting ready for another big leg up.
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
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