Daily Market Commentary

Week-In-Review: Stocks Hit Fresh Record Highs

Stocks Hit Fresh Record Highs

Stocks rallied sharply last week after the damage from hurricane Irma was much less than originally expected. Thankfully, in the 11th hour, Irma weakened considerably, made a last-minute turn, and skated up the west coast of Florida. The Dow, S&P 500, Nasdaq Composite, and Russell all ended the week higher as investors continued to shrug off all negative news and bid stocks higher. The market looks very strong and the fact that it refuses to fall, even on bearish headlines, is a bullish sign. Last week, North Korea fired another missile over Japan, Retail Sales missed estimates and inflation came in higher than expected, but stocks rallied. That reiterates an important point- that it’s not the news that matters, but how the market reacts to the news. Until, we see any signs of weakness, the bulls remain in clear control.

Mon-Wed Action:

Stocks rallied on Monday as the country remembered 9/11 and the market breathed a collective sigh of relief that Hurricane Irma weakened considerably and the damage was much less than expected. The market was also happy to see that North Korea did not fire another missile over the weekend. In China, inflation picked up after the producer-price index rose to 6.3% in August, beating the Street’s estimate for a gain of 5.5%. The stronger-than-expected reading came after Beijing announced new policies aimed at limiting capital outflows and continued pressure on crypto-currencies by banning them entirely from exchanges, while allowing over-the-counter trading to continue. Stocks edged higher on Tuesday as buyers continued to buy the latest dip. On Wednesday, the producer price index came in at +0.2%, missing estimates for +0.3%. North Korea decided to fire another missile over Japan which initially sent stock futures lower but then buyers showed up and stocks quickly recovered.

Thur & Fri Action:

Before Thursday’s open, the government said, the consumer price index came in higher than expected which was another sign that inflation may be increasing. Remember, higher inflation may put pressure on the Fed to continue raising rates. Stocks rallied on Friday even after retail sales came in at negative -0.2%, missing estimates for a gain of +0.1%.

Market Outlook: Bulls Are Back In Control

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

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