Equities posted the best January results in thirty years; the abrupt reversal of fortune, while perhaps bittersweet, signaled renewed confidence in the economy. For the week the S&P 500® Index rose 1.57%, followed by the Nasdaq (1.38%), Dow Jones Industrial Average (1.32%) and Russell 2000® Index (1.29%). On Wednesday, the Federal Reserve left interest rates unchanged and removed longstanding commentary that further rate increases may be necessary. The Fed also stated that its prima… View More
Today the Federal Reserve Board decided to leave the Federal Funds Rate unchanged. More importantly, they also said that "In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes." After the December meeting (when the Fed raised rates by 0.25%), we shared that we thought Powell's (and the Federal Re… View More
The equity markets ended this holiday-shortened week essentially unchanged. The Dow Jones Industrial Average (+0.12%) and the Nasdaq (+0.11%) led with modest gains followed by the Russell 2000® Index (+0.02%) while the S&P 500® Index fell 0.22%. Shortly before the markets closed on Friday, President Trump announced a deal with lawmakers to approve a bill which would reopen the federal government until February 15th while negotiations continue. State unemployment claims for last week … View More
The equity markets recovery continued last week led by a 2.96% gain in the Dow Jones Industrial Average followed by the S&P 500® Index (2.87%), Nasdaq (2.66%) and Russell 2000® Index (2.43%). Corporate earnings season began last week with major financial institutions including Citigroup, JPMorgan, Bank of America, and Goldman Sachs; each posted earnings that exceeded analysts’ expectations despite low trading revenues related to December’s severe volatility. The companies believe t… View More
The equity market recovery continued this week as the oil price rebound, Federal Reserve comments regarding ‘patience’ in interest rate policies, and mid-level trade negotiations with China improved investor sentiment. The lack of progress on the government shutdown, which on Saturday will become the longest in history, apparently did not influence market sentiment. Fears of a recession subsided as the Russell 2000® Index led the markets with a 4.83% gain followed by Nasdaq (+3.45%); S… View More