- Economic data was a mixed bag last week with only continuing jobless data being the one surprise to me. Most revisions have been downward thus far so it’s nothing to write home about until we start seeing consistent numbers above 1,900K.
- A slew of strong earnings from large and mega-cap companies effectively batted away sellers and even fostered a new all-time high on the close from the S&P 500. I recall many money managers predicting weakness this quarter’s earnings season. Much to their chagrin, I anticipate more new highs in the days to come as neutral and bearish parties reverse course in the face of continued earnings growth.
- Global markets held up well despite steady rates from the PBOC and a rate hike from the BOJ. These were both largely priced in. It’s clear that international markets are anticipating a repeat of dollar-weak policy in the first year of Trump’s administration. All arrows are pointing to this being the correct prediction.
- Next week is important from an earnings perspective as several of the S&P 500’s largest companies report it. A continuation of last week’s success will fuel more new highs. It will be interesting to see if there is any change of tone from a recently hawkish Jay Powell now that Donald Trump is back in the oval office.