Last week the Dow 30 and S&P 500 notched five straight weeks of gains after President Trump signed a bill on Friday morning that cut the corporate tax rate to 21 percent from 35 percent, as discussed in my previous post.
The Dow is on pace for its first nine-month winning streak since 1959 and the S&P is on track for its first nine-month winning streak since 1983 as the second greatest bull market in history chugs along. In addition, the Mastercard SpendingPulse report showed holiday sales from Nov. 1 to Dec. 24 increased 4.9 percent this year to a record in their largest year-on-year increase since 2011.
All signs point toward hockey stick like growth in the economy and global markets. The mid-cycle earnings recovery has been confirmed, the only risk heading into 2018 is a slowdown for corporate earnings. However, unlikely, as online shopping increased 18.1 percent from the prior year and sales of electronics and appliances posted their strongest growth in 10 years, while home furniture, home furnishings and home improvement also saw significant increases, according to the MasterCard SpendingPulse report. On Friday, we will etch the final tape of 2017 in the history books and I’m sure you’ll hear from me before then, in the meantime follow @TWHooker on Twitter for other interesting reads and articles.