Stocks rebounded yesterday and then some. And the major indexes are within striking distance of being up for the week. If so, that would make it 5 weeks in a row.
The theme of a strengthening economy continues to underpin stocks.
That was underscored with yesterday's MBA Mortgage Applications report which showed the composite index up 8.6% (with purchases up 6.0% and refi's up 10.0%).
We'll get another look at the economy today with Weekly Jobless Claims, Existing Home Sales, the Chicago Fed National Activity Index, the Kansas City Fed Manufacturing Index, and the Leading Indicators report.
The stellar earnings season so far is also fueling stocks.
We'll get another 218 companies reporting earnings between today and tomorrow. And another 994 next week. Earnings season is always an exciting time since stocks typically go up during earnings season.
We expect to hear more on the proposed $2.25 trillion infrastructure package, and the corporate tax hikes to pay for it. Same for the proposed $1 trillion 'families plan' package to be unveiled later this month, and the individual tax hikes to pay for that one. There's no timeline for further details on either of those, but we assume we'll get more info on those before the scheduled State of the Union address on April 28
th.
In the meantime, keep your eye on the big picture. There will be bumps along the way. But the US is poised for the fastest growth rate in 36 years. Near zero intertest rates are here for the foreseeable future. And record pent-up demand is soon to meet a record amount of stimulus money.
This is history in the making.
And expectations are that we could be at the beginning of a multiyear boom.
To learn how to take full advantage of it, be sure to read my latest commentary...
The Coming Economic Boom and What It Means for Stocks
Best,
