Time for a pause
After seven days of work, the Bulls decided to take a rest and let the market consolidate, amid higher valuations and an increasingly overextended technical´s upside scenario, still the industrial Dow Jones managed to scored another record closing high, while its Wall Street peers receded just marginally. Energy shares lost 1.37% despite the 0.6% advance in the WTI Oil to $53.44 a barrel, consumer discretionary shares slipped 0.44%, but are still at 19 times their PER, which is more than 10% higher than the current S&P500 price earnings ratio (PER).
With the earning season regarding last year quarter nearly done, companies in the S&P500 have increased their profits by 7.3%, which is slightly lower than the 8.4% anticipated a couple of weeks ago, but way better than the 4% to 4.5% expected at the start of the season. As for the first quarter of 2017, annalists are quite optimist and anticipate at least a 10% growth in earnings, which if verified, could be enough to keep the bull market running for a bit longer, if nothing negative and important happens outside the earnings realm.
On the Forex market the U.S dollar dropped 0.3% against a basket of other major currencies, while the Yen outperformed versus the greenback to 113.212 per dollar, for a 0.8% gain.
Analyst Contributor at ActivTrades