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Market in a Minute: January 2-5, 2018

Monday, January 8, 2018

Executive Summary

Global equities began 2018 with a bang. Major indexes set record highs daily amid continued evidence of an upturn in global economic growth. Volatility, as measured by the CBOE’s Volatility Index (VIX), reached new all-time lows.

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Details

Domestically

After taking a breather over the holidays, markets resumed their record-setting performances. Technology, materials and energy led the way.

The DJIA, S&P 500, NASDAQ and Russell 2000 repeatedly set new records. The DJIA closed over 25,000 on Thursday. The rising market helps defuse worry about new, lower tax rates generating profit taking at 2018’s start.

December jobs fell short of expectations. Nonfarm payrolls rose by 148,000 (vs 190,000 expected). Unemployment held steady at 4.1%, and average hourly earnings rose the expected 0.3%. Our economy added 2.1 million jobs in 2017, the seventh straight year of 2+ million.

Globally

The FTSE 100 and MSCI Asia Pacific also closed at all-time highs during the week. The Nikkei reached a 26-year high. A combination of strong global growth, low interest rates and subdued inflation has bolstered markets.

Manufacturing data was robust. PMIs showed solid manufacturing growth to close out 2017. The Eurozone index hit a record at 60.6. The JPMorgan Global composite manufacturing index rose to a 54.5, its highest reading in almost seven years.

Eurozone inflation dipped further below the European Central Bank’s target, calling into question the ECB’s ability to wind down fully its monetary easing program by 2018’s end.


Sources:
The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; BBC News; The Associated Press; Reuters.com; Crain’s New York Business; MFS research; NYSE; NASDAQ; Dorsey-Wright Associates; NYMEX.com; CNBC’s Power Lunch & Squawk Box programs; Investing.com; Markit.com; the New York Times; Standardandpoors.com; Djindexes.com; 247wallstreet.com; MarketWatch.com; Morningstar.com; Thomsonreuters.com; the Financial Times.com; Briefing.com; BusinessWeek.com; Dol.gov; Fxstreet.com; Streetinsider.com; Ycharts.com;
 
The data above were taken from sources deemed reliable. However no guarantee can be made as to their completeness and accuracy.
Nothing in the above is meant to be, nor should it be construed as, investment advice or recommendations to buy or sell any security. Individual securities, whenever mentioned, are for illustrative purposes only and may not be relied upon as investment advice.
All indices are unmanaged and are not illustrative of any particular investment. A direct investment cannot be made in any index.
Tax and/or legal information contained herein is general in nature and for informational purposes only. It should not be relied upon as advice. Consult your tax professional or attorney regarding your unique situation.
Past performance is no guarantee of future results.
 
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