Market Commentary, 1/14/19

The Dow finished the first full week of the new year up 2.4%, the S&P 500 up 2.5%, and the Nasdaq up 3.4%, marking the third positive weekly result in a row. Friday’s small decline snapped a five-day positive streak.

The lack of a resolution to the partial government shutdown, which became the longest in US history on Saturday, has yet to have much of an impact on the stock market. As the shutdown entered its fourth week, there was no immediate sign of a break in the impasse between President Trump and Democratic leaders in the House over spending and border security.

The government reported on Friday that inflation slipped 0.1% in December, marking the first decrease in nine months. Declining gasoline prices were a key reason for the monthly decrease, as they offset increases in rental housing and healthcare costs. (Source: US Consumer Price Index)

Major banks will begin reporting results next week as quarterly earnings season gets under way. As I mentioned in prior communiques, Q4 earnings for companies in the S&P 500 are now expected to rise about 12% compared to the same quarter a year ago. While the projections have declined, this would still mark the fifth straight quarter of double-digit earnings growth for the index. (www.factset.com)

In US economic news, both the number of people applying for unemployment benefits for the first time and those already receiving benefits fell last week, a positive sign for the labor market and overall economy in the new year. (Source: Sherman Sheet)

Regards,
Jeremiah Patterson, CFP^®

Copelin Financial Advisors
514 Brooks Street
Sugar Land, TX 77478
Phone: 281 240-2902
Fax: 281 240-2856
jeremiah@copelinfinancial.com

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.