After yesterday’s hesitant market moves, things are pushing higher today. The DOW was at its best level of 80 points higher earlier today, closing in on a new all-time high. The S&P was up by 9 to 2474 while the NASDAQ had gained 39 up to 6372.
The market was motivated to do better as AAPL went from being lower to being higher at its best ever levels. This was influencing mostly everything with the only exceptions being the energy stocks which are down despite the overall better tone. XOM has dropped to a new low for the year at 77.
Breadth numbers are positive at a better than 2 to 1 upside ratio so far today. The VIX continues its recent downward move again from those highs at 16 during last Thursday’ selling panic. It is currently at 11.28, lower by .75.
Bond yields are not moving much with the 10-year Treasury Note at 2.26%. The dollar is strengthening again versus other currencies with the Euro at a three-week low at 1.17 while the Japanese yen is at 110.9 to the greenback. Both crude oil and gold are doing very little today at just above $47 a barrel and $1274 an ounce respectively.
The S&P now trades at around 18.5 times estimated earnings for 2017 and 16.6 times estimated earnings of $146 for 2018.
Donald M. Selkin
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. The Daily Market Notes have been abbreviated and updated with permission from the author.