“U.S. stocks kicked off the new year on a high note on Tuesday as Wall Street bet on another strong year for equities,” Fred Imbert and Alexandra Gibbs report for CNBC. “The S&P 500 gained 0.8 percent to close at 2,695.79, notching intraday and closing records, with consumer discretionary, energy materials and tech all rising more than 1 percent.”
“The Nasdaq composite advanced 1.5 percent to 7,006.90, also hitting record highs. The index also closed above 7,000 for the first time,” Imbert and Gibbs report. “The Dow Jones industrial average rose 104.79 points to finish at 24,824.01, with Disney shares climbing 4 percent.”
“Stocks got a boost last year from strong growth in corporate earnings, solid economic data and as expectations of lower corporate taxes. Last month, President Donald Trump signed a bill that slashed the corporate tax rate in the U.S. to 21 percent from 35 percent. Several companies announced they were giving bonuses to their employees after Trump signed the bill,” Imbert and Gibbs report. “Trump tweeted on Tuesday: “Companies are giving big bonuses to their workers because of the Tax Cut Bill. Really great!””
Companies are giving big bonuses to their workers because of the Tax Cut Bill. Really great!
— Donald J. Trump (@realDonaldTrump) January 2, 2018
Imbert and Gibbs report, “A good start to the year is usually followed by strong yearly performances, according to Ryan Detrick, senior market strategist at LPL Financial.”
Does the 1st trading day of the year matter? Sounds random, but …
Past 20 years, on the 1st day of a new year the S&P 500 has been higher 10 times and lower 10 times.
Full year return if up the first day? +14.2%.
Full year return if down the first day? -0.6%
— Ryan Detrick, CMT (@RyanDetrick) January 1, 2018
Read more in the full article here.
MacDailyNews Take: More good news for Apple and everyone else as a rising tide lifts all boats!
U.S. employment jumps more than expected in November, boosts U.S. stocks – December 8, 2017
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American consumer confidence soars to highest level since December 2000 – October 31, 2017
U.S. jobless claims plunge to lowest level since 1973 – October 19, 2017
U.S. economy picks up steam; second-quarter GDP up 3.0% reflecting robust consumer spending and strong business investment – August 30, 2017
U.S. consumer confidence shows Americans upbeat on jobs, economy – July 25, 2017