The DOW, which seemed lately to have forgotten how to go higher, ended on a positive note for the first time in six days. The major indices were all inspired by the futures markets and jumped higher right at the opening bell. The DOW gained 111 by mid morning until the inauguration speech began. In the end, the three major indices were all green: the DOW added 94 points, the S&P 500 went up 7, and the NASDAQ gained 15 points today.  Breadth numbers were positive by almost 2 to 1 while the VIX dropped nearly 10% to close at 11.54.

There were no economic reports today but bond yields did rise to 2.50%. The dollar was idle and the other major currencies were unchanged. Gold was back over $1,200 again and crude oil was up to $53.24.

Next week has a big earnings lineup: Monday – BOH, HAL, MCD and YHO; Tuesday – 3M, DD, JNJ and TRV, plus BABA, GLW, DHI, ISRG, KMB, LM, TXN and VZ; Wednesday – BA and UTX plus ABT, T, CTXS, EBAY, FFIV, FCX, MCK, NSC, QCOM, ROK and WAC; Thursday – CAT, INTC and MSFT plus GOOG, BHI, BMY, JBLU, KLAC, JNPR, RCL, SBUX and VMW; Friday – AAL, CL, GD, HON , WHR plus CVX.

For 2017, the earnings projections for the S&P are expected to be up by around 10% according to current estimates.

Donald M. Selkin

These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning.  The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report.  This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities.  This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm.   This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author.  These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.