Investment Commentary –December 27th, 2017

Market Indices as of Market Close December 27th, 2017
Dow 24,761 (28.25% YTD)
S&P 2,680 (22.11% YTD)
NASDAQ 6,936 (28.85% YTD)
Global DOW 3,081 (21.90% YTD)
Gold $1,289 10.27%)
OIL $59.53 (4.60%)
US 10Y Treasury 2.46 (1.60%)
Barclay Bond Aggregate (3.15% YTD)

Dow futures fight to avoid longest skid lower in about 3 months

U.S. stock futures struggled for direction on Wednesday amid seasonally low trading volume. Shares of Boeing Co., however, were among the early bright spots, rising after an announced deal with Royal Air Maroc.

What are stock futures doing? Futures for the Dow Jones Industrial Average YMH8, -0.01% declined 7 points, or less than 0.1%, to 24,785, with a decline on Wednesday marking the equity benchmarks first three-session slide since a four-day drop ended Sept. 26, according to FactSet data. The S&P 500 index ESH8, +0.10% added 1.65 points to 2,68.75. Futures for the Nasdaq-100 index NQH8, +0.09% climbed 1 point, or less than 0.1%, at 6,461.

On Tuesday, U.S. stocks finished slightly lower as a decline in Apple Inc. AAPL, -2.54% more than offset postholiday gains in the retail sector and a surge in crude-oil futures that took the commodity to a 2 ½-year high. The Dow average DJIA, -0.03% closed 0.03% lower on Tuesday, while the S&P 500 index SPX, -0.11% dropped 0.1% and the Nasdaq Composite Index COMP, -0.34% ended down 0.3%.

All three benchmarks saw the lowest volume for the year for a full trading day.

News around the web:

Signed and sealed

Congress gave final approval to the GOP-authored overhaul of the nation’s tax system, including steep cuts to corporate tax rates. President Trump signed the bill into law on Friday, and new tax rates are expected to be reflected as soon as February 2018 in the amounts withheld from workers’ paychecks.
Santa Claus rally?

Entering the final week of 2017, market chatter is turning to prospects for a potential Santa Claus rally, or a gain in stock prices between Christmas and New Year’s Day. Over the past two decades, the S&P 500 has risen an average 0.9% over the last five trading days of the year, while the Dow has climbed an average 0.7%, according to the Wall Street Journal.

Shutdown averted

Fears of a partial shutdown of the U.S. government eased over the short term as Congress and President Trump on Thursday agreed on a stopgap spending bill. However, the agreement extends only through January 19, and it failed to resolve contentious spending issues that Congress is expected to address entering the New Year.

On tap this week:

Thursday

Weekly unemployment claims, U.S. Department of Labor

LEADERS & LAGGARDS

This past week’s leaders were Basic Materials and Conglomerates. Laggards were Technology and Healthcare.

This day in financial history: December 27th, 1983 Steel Takes A Hit

U.S. Steel takes a $1.2 million tax write-off along with a 20 percent cut in production, leading to the layoff of 4,600 employees.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.

https://www.marketwatch.com/story/boeing-leads-dow-futures-higher-in-holiday-thinned-session-2017-12-27

https://www.econedlink.org/economic-calendar.php?month=12