As the year draws to an end, investors are wondering if the ‘Trump Rally’, which has propelled stocks some 6% higher since election-day, can last into the first quarter and beyond. Recent economic news has been encouraging, and market participants will be watching the slew of data being released this Thursday to gauge the probability of a continuation of the rally. One immediate headwind stocks may face are corporate earnings, through last Friday, 77 of the S&P 500 constituents have issued negative EPS guidance (according to FactSet). And, with an expected EPS growth rate of 2.2% the current rally seems to be pricing in a good amount of upside surprises. None-the-less, markets have a long history of swinging to extremes before correcting to a more normalized valuation, so bears may be disappointed in the early parts of the New-Year.
This Weeks Market Moving Events:
- Monday: PMI Services, Janet Yellen Speaks
- Tuesday: U.S. Redbook report
- Wednesday: Mortgage Applications, Existing Home Sales
- Thursday: U.S. GDP (Q3), Jobless Claims, Chicago Fed National Activity Index, Corporate Profits, Home Prices, Personal Income, Leading Indicators, Kansas City Fed Manufacturing Index
- Friday: New Home Sales, Consumer Sentiment