Will Earnings Keep the Stock Market Momentum Going?

January 16, 2018

Will Earnings Keep the Stock Market Momentum Going? Photo

Last week’s inflation data came in slightly above expectations while most equity markets continued to rally. Stocks pushed to new all-time highs on optimism for economic growth, deregulation and a boost to earnings from the corporate tax cut. The holiday-shortened week doesn’t hold any significant economic data; however, the markets will be very focused on corporate earnings especially from the financial sector. Several large banks including Citigroup and Bank of America report earnings this week, and the market will closely watch any forward guidance they provide. I continue to expect stocks to move higher in the coming weeks. Keep an eye on the rising price of oil, currently $64 per barrel, as an indicator of world growth.

Tags: Monday Morning O'Malley | Oil | Inflation | corporate earnings | Equity market

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