Monthly Archives: January 2018

The Weekly Update

Week of January 29, 2018
By Christopher T. Much, CFP®, AIF®

Stocks had an impressive week yet again, as each of the domestic indexes reached record highs and gained at least 2%. The S&P 500 added 2.23%, the Dow increased 2.09%, and the NASDAQ grew 2.31%. International stocks in the MSCI EAFE joined the growth, adding 1.49%.

On Monday, January 22, the government shutdown ended after 3 days, as House and Senate members reached an initial compromise. President Trump signed the measure on Monday evening, securing government funding until February 8.

With the funding discussion set aside for the next week or so, we believe 3 topics were of particular interest for the markets:

1. Corporate earnings
2. Global growth
3. Gross domestic product (GDP) readings

1. Corporate Earnings
We are in the middle of the best corporate earnings season in 5 years. So far, 80% of S&P 500 companies that released 4th-quarter data have …

The Weekly Update

Week of January 22, 2018
By Christopher T. Much, CFP®, AIF®

We’re only a few weeks into 2018, and stocks are showing quite a strong performance so far. Last week, major domestic indexes posted gains yet again, with all 3 up at least 5% this year. By Friday, the S&P 500 had added another 0.86%, and both the Dow and NASDAQ were up 1.04%. All 3 indexes hit new record highs at least once during the week.

In addition to the solid performance for U.S. equities, we’re also experiencing synchronized global growth. European and Asian stocks grew last week, and China’s growth data was more positive than expected. Overall, international stocks in the MSCI EAFE added a healthy 1.24% last week. Year to date, the MSCI is up 4.95%.

What happened last week?
Two key topics drove conversations: corporate earnings and a government shutdown.

1. Corporate Earnings
In the U.S., corporate earnings season …

The Weekly Update

Week of January 15, 2018
By Christopher T. Much, CFP®, AIF®

Domestic markets continued their strong start to 2018, posting gains across the board for their 2nd week. The S&P 500 added 1.57% and closed at a new record high on Friday. The index just posted its best 10-day beginning to a year since 2003, with a 4.2% gain so far this year. The Dow also hit a new record on Friday and gained 2.01% for the week. The NASDAQ increased by 1.74%, while international stocks in the MSCI EAFE joined last week’s gains, adding 1.20%.

By week’s end, we didn’t receive a tremendous amount of economic data. However, the economy did provide details that reveal it continues to pick up speed. In particular, both corporate earnings and inflation appear to be on the rise.

What We Learned Last Week

1. Corporate Earnings Continue to Increase
Earnings season is upon us, and …

The Weekly Update

Week of January 8, 2018
By Christopher T. Much, CFP®, AIF®

The first week of 2018 is behind us, and across the globe, stocks experienced a strong start to the year. International stocks in the MSCI EAFE gained 2.44% last week. In the U.S., our major indexes also leapt forward, reaching several records and milestones.

Domestic Index Performance for the First Week of 2018

S&P 500:

• Gained 2.60%
• Hit 2,700 for the first time
• Posted its largest weekly gain since December 2016

Dow:

• Gained 2.33%
• Hit 25,000 for the first time
• Had its best yearly start since 2006

NASDAQ:

• Gained 3.38%
• Hit 7,000 for the first time
• Posted its largest weekly gain since December 2016
• Had its best yearly start since 2006

What drove markets last week?

A variety of factors affected the markets last week—from tax reform to commodity prices. Interestingly, considering the indexes’ positive performance, one of the biggest economic headlines seemed …

The tax debate has settled (for now)

While much of the political fire and fury from Congress’ tax plan debate has settled, some of the economic smoke still lingers as financial analysts and private investors plot their way through the new $1.4 trillion law’s long-range ramifications. Along with new rates and deductions, the new tax law makes changes to the AMT and estate tax exemption levels.

Want to know more? Grab our new article now for some of the details http://bit.ly/newtaxplan

The Weekly Update

Week of January 1, 2018
By Christopher T. Much, CFP®, AIF®

In the final trading days of a strong 2017, U.S. indexes lost some ground. During the holiday-shortened week, the S&P 500 dropped by 0.36%, the Dow lost 0.14%, and the NASDAQ gave back 0.81%. A selloff toward the end of the day on Friday contributed to the domestic indexes’ weekly losses. International stocks in the MSCI EAFE ended the week in positive territory, gaining 0.89%.

Despite the losses, all three major domestic indexes experienced their best year since 2013. During 2017, the Dow hit 71 record highs, and the NASDAQ gained in all but 1 month for the first time ever.

Overall, indexes posted the following growth for the year:

• S&P 500 up 19.42%
• Dow up 25.08%
• NASDAQ up 28.24%
• MSCI EAFE up 21.78%

In addition to sizeable gains, there was also very little market volatility in 2017. The S&P …