Economic Data and Market Highlights
Despite the abbreviated trading week in the US, there were numerous economic data releases, most of which were in line with expectations except for new home sales which disappointed. Headlines were largely dominated by the incoming Trump Administration and its future relationship with Mexico and Canada. US markets rose with the S&P 500 jumping 1.08% while the Dow rose 1.44%. Bonds as represented by the Bloomberg Aggregate Bond index rose 1.39%.
As we noted last week, investor sentiment has reached extreme levels. A recent report from The Conference Board seems to indicate the same.
The chart below is another indicator of sentiment with asset flows into leverage ETFs.
We’ll be watching sales coming from retailers as the biggest shopping days of the year are upon us.
The Past Week’s Notable US data points (with revisions)
The Upcoming Week’s notable US data points
