Markets were volatile last week as political events continued to dominate headlines. On Wednesday, revelations related to President Trump’s dismissal of FBI Director James Comey unnerved investors; the 373-point drop in the Dow Jones Industrial Average was the Index’s largest decline in more than eight months. Markets recovered a portion of Wednesday’s sell-off on Thursday and Friday and markets are up today as economic data provided some reassurance of favorable business conditions. Joble… View More
With some of the news coming out about about Director Comey and the impact it is having on our political environment (and market), we wanted to share a research piece we read. In answer to the question we placed at the head of this email, there is no direct connection between Director Comey and the markets. Earnings have been strong, economic data has been good, and we believe fundamentals will continue to do well. However, there are some legitimate concerns over the news coming out and whether … View More
Stocks were mixed-to-down last week as political events dominated headlines. The firing of FBI Director James Comey might have impeded the administration’s tax reform and infrastructure agendas; so far, though, the market’s non-reaction may actually accelerate policymaking timelines as the administration looks ahead. Friday’s announcement of certain trade agreements with China highlighted progress on discussions that began following the President’s meeting last month with Chinese Preside… View More
Stocks continued to rally last week following the first round of France’s presidential elections. Centrist candidate Emmanuel Macron emerged as the favorite to win the May 7th run off vote against far-right candidate Marine Le Pen; the latest polls show Mr. Macron, a political neophyte, leading with 60% of the vote. The two offer starkly contrasting visions for France and, by extension, the future of Europe. Mr. Macron’s candidacy has been cast, especially in light of ongoing Brexit ne… View More
Earnings are expected to come in well ahead of last year's numbers, despite a couple of notable misses this week (GS, IBM). Weak growth in 1Q16 provides an easy comp and improved nominal growth provides an additional boost for companies to report high single digit to low double digit Y/Y growth rates. S&P 500 earnings are expected to rise 10.8% Y/Y. It is worth noting the double anniversary effect of Energy sector earnings weakness, which will mitigate the lift to earnings. S&P profi… View More