Market Commentary, 02/25/2019
The Dow finished in the positive for the ninth consecutive week, its longest streak in nearly 25 years. The Dow rose 148 points to close the week up 0.6%, the S&P 500 also gained 0.6%, and the Nasdaq rose 0.7%.
Entering the final week of February, the S&P 500 is on pace to record its biggest early-year advance in nearly three decades. The last time the index climbed more than 10% over January and February was in 1991. This year’s gains have been broad; as of Thursday, 91% of S&P 500 stocks were trading above their 50-day moving averages. (www.seekingalpha.com; 02/25/2019)
The site of ongoing trade talks between China and the US shifted from Beijing to Washington as negotiators reported they made progress toward a deal to avoid further escalation of tariffs. While sticking points remain under discussion, President Trump announced that he was delaying an increase in tariffs that had been set to take effect on Saturday, March 2. (www.finance.yahoo.com; 02/25/2019)
In its semiannual report to Congress, the Fed said the US financial system remains substantially safer than before the 2007-2009 recession. Further explaining that the US economy appears to be on solid footing, with gross domestic product (GDP) growing at what appears to be a little less than 3% for 2018. They have softened and adapted a “wait and see” approach to further interest rates, but expressed that economic expansion continues to be supported by steady job gains, increases in household wealth, expansionary fiscal policy and favorable domestic financial conditions. (www.wsj.com; 02/22/2019)
The market continues to improve from the December lows amid continued positive economic news. This week the US Bureau of Economic Analysis will release the first estimate of Q4 GDP growth on Thursday. The expectation is that the growth will have slowed from the 3.4% annual rate of Q3.
Jeremiah Patterson, CFP®
Copelin Financial Advisors
514 Brooks Street
Sugar Land, TX 77478
Phone: 281 240-2902
Fax: 281 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.