US Stock Prices Record Best Streak of Daily Gains Since Jan 1987; “The Higher The Diving Board, The Bigger The Splash”?
US Equities markets are closing out the holiday shorten week at or near all-time highs but valuation concerns are starting to pick up. The S&P 500, relative to its 50-day moving average in terms of standard deviations, has not been this overbought since 2004. The Dow recorded its 10th straight new high–its longest winning streak since January 1987. FOMC February 1 meeting minutes showed that the Fed is comfortable with raising interest rates “fairly soon”.
The Fed will meet again and Fed Funds are pricing in a 38% chance of a rate hike, up from 18% pre meeting minutes. Other Economic releases of note was Wednesday’s existing home sales number rising 3.3% which beat the +1.1% estimate. As we approach the end of the earning season we have seen an improvement in the underlying numbers, but for the most part the markets have been rallying on the expectation of tax reductions and deregulation. Market momentum continues but it seems as though many questions from the pace of rate hikes to tax and regulations specifics
Need to be answered if the rally is to continue. The Fed did point out that they are closely watching employment and inflation numbers. So while the policy specifics coming from the White House are unorthodox and at time difficult to decipher, the inflation and employment data are a little easier to track. Next week’s highlights are January durable goods orders and pending home sales on Monday, Second revision to 4Q GDP on Tuesday, January personal income and spending, February ISM data and the Beige Book on Wednesday.
Managing Director International Trading
Mischler Financial Group
Investment Banking | Institutional Brokerage
Larry Peruzzi is a 20 yr global trading markets veteran and brings a unique perspective to global equities market commentary via Mischler Financial Group, the securities industry’s oldest minority broker-dealer owned and operated by service-disabled veterans. Larry’s experience and best execution perspective stems from his sitting on ‘both sides of the aisle.’ For more than half of Larry’s career, he ran buy-side trading desks for Standish Mellon and thereafter, The Boston Company. In both of those roles, Larry was responsible for implementing and managing international equities trade execution. Larry’s perspectives are frequently cited by the leading financial news publishers, including The Wall Street Journal, Bloomberg LP and Reuters
Mischler End of Week Equities Market Commentary via Peruzzi’s Perch Feb 24 2017 end-of-week edition is distributed via email to institutional investment managers and Fortune Treasury clients of veteran-owned broker-dealer Mischler Financial Group, the investment industry’s oldest and largest minority broker-dealer owned and operated by Service-Disabled Veterans.
Peruzzi’s Perch is a weekly synopsis of Everything Equities as seen from the perch of Mischler Financial Group’s International Equities Desk. Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”, Peruzzi’s Perch is one of four distinctive content pieces produced by Mischler Financial Group.
US Stock Prices Record Best Streak of Daily Gains Since Jan 1987; “The Higher The Diving Board, The Bigger The Splash”? Peruzzi’s Perch Mischler Financial Group
News and Information Categories
- Mischler Muni Market Outlook: Municipal Bond Offerings Scheduled Week of April 24 04/24/2017
- Week’s IG Corporate Bond Issuance: Cooling Off Period; April Showers Bring May Flowers 04/22/2017
- FIG Funding 5.0- Mother Merrill Launches a MOAB (Mother of All Bonds) 04/20/2017
- FIGs 4.0; Investment Grade New Issue Re-Cap- Mischler Debt Market Comment 04/19/2017
- Mischler Muni Market Outlook-Pending Municipal Debt Offerings Scheduled This Week 04/17/2017
- Risk Appetites Sour as News Cycle Confounds, But US Equity Markets Remain Stable; Mischler Commentary 04/07/2017