Weekly reviews

Wall Street looks forward to Trump’s first week in office

US stock indexes ended higher on Friday following the first official speech of Donald Trump as President of the United States. He used a strong conservative rhetoric to emphasize the importance of protecting national interest on international deals and bringing back jobs.

"Protection will lead to great prosperity and strength. I will fight for you with every breath in my body and I will never ever let you down" said the former reality show star.

For those who still doubted on Trump’s direction, he made clear that protecting America’s borders and interest would be a key component for success in the near future.

  • Dow Jones Industrial Average: +0.48 percent / 19827.25 points

  • Standard & Poor’s 500: +0.34 percent / 2271.31 points

  • Nasdaq Composite: +0.28 percent / 5555.33 points

Telecommunications and materials grew the most among S&P components, pushing the index above 0.30 percent. The Dow Jones industrial average was ahead of other indexes, adding close to 95 points by the end of the week, with Procter & Gamble and Merck on top. The Nasdaq Composite also finished on a positive note, putting an end to a five-day fall.

Equities were mostly higher over speculation that the new administration will promote higher fiscal spending, reduce corporate taxes and deregulate some key sectors as pharmaceuticals. However, some analysts remain skeptical about Trump’s ability to push the agenda and pointed to a possible downturn in the next few days unless the new president starts showing progress.

There were no major statistics scheduled on Friday but some Fed officials speech such as Philadelphia Fed President Patrick Harker and San Francisco Fed President John Williams. Looking at the corporate earnings calendar, General Electric’s results came in aligned with expert’s forecast while Procter & Gamble established above expectations.

Monday is expected to show little changes as there are basically no events on the agenda and investors are quietly coming back to risky assets while keeping an eye on Trump’s first moves. Manufacturing PMI and Existing Home Sales are due on Tuesday. Crude oil inventories from the US Energy Information Administration will be released a day later. Goods Trade Balance for December, Initial Jobless Claims and Services PMI index are expected on Thursday. Finally, the week ends with key fourth-quarter GDP data and last month’s Durable Goods Orders.

Fort Financial Services

chart 01.2017

chart 01.2017

chart 01.2017