Your Wednesday Market Blip 3/1/17

Your Wednesday Market Blip 3/1/17

What a way to start the month of March! Trump’s speech was “Presidential” and spoke of investing in infrastructure, inner cities and changing our trade policy so that everyone in the world who wants to buy a Harley can do so at a fair price. After the speech the odds of a March interest rate hike went from around 40% to near 70%. Fed Chair Janet Yellen will be the focus of the bond markets for the next three weeks. Infrastructure related companies like Cat and US Steel shot higher as did the banks and just about everything else. Not only were US equities higher but international markets were robust as well. Japan was up 1.4%, Germany gained 1.9% and France rose over 2%. China only gained a fraction however which could be due to worries over trade issues and how they might play out under the new administration.
The Dow surged 303 on trading volume that was heavy at the open but lighter to close. The Dow closed at a new record of 21,115. While bullishness rose to 63.1, which is the highest reading since 1987, indicators here at Greystone so far continue to be positive but we are keeping an eye on things.
Lowes Home Improvement jumped after a stellar earnings report where same store sales rose 5.1%, profits were up 46% and revenues were higher by 19%. Forward guidance was solid as the company is benefitting from an improving real-estate market.
Gold finished the day lower. At the close gold was off $3.60 an ounce at $1,250 an ounce. Early in the day gold was down over $11 an ounce but recouped most of that throughout the day.