Four in a Row

The U.S. Stock market logged its fourth weekly gain in a row.  The S&P 500, Dow Jones Industrial Average and Nasdaq all gained approximately 2.5%-3.0% for the week.

Since Christmas Eve, the markets have erased half of the losses from the September peak.  The rally coincides, as we previously discussed, with supportive comments from the Fed as well as optimism in trade discussions with China.  There were reports this week that the U.S. was considering lowering tariffs as trade negotiations continue.  There were additional reports that China was willing to address the trade imbalance.

Earnings season has started, and thus far, fourth quarter earnings have come in about as expected.  In addition, forward earnings guidance has not been as bad as expected.

So far, markets have shrugged off government shutdown concerns and additional Brexit issues.  It seems interest rates and trade issues are having the most impact on investor sentiment in the current environment.