Record Highs – Monday Morning Market Memo – November 18, 2019

Record Highs – Monday Morning Market Memo – November 18, 2019

Good morning,

We are not sure about the number of new people recreationally using marijuana in states where it is now legalized, nor can we offer much insight into reported rising temperatures due to global warming. We can however, tell you with certainty that all three major stock market averages closed at new all-time record highs last week.

The Dow Jones Industrial Average closed up 1.2% to 28,004.89 – the NASDAQ Composite rose .8% to 8,540.83 – and the Standard & Poor’s 500 Index gained .9% to 3,120.46 – posting its sixth straight weekly gain. The new highs came after White House Economic Adviser Larry Kudlow said the US and China are “getting close” to a trade deal. Additionally, the market is continuing to benefit from accommodative monetary policy (Federal Reserve interest rate cuts) and positive momentum.

Looking to the week ahead, earnings season is not over quite yet, as there is one more notable batch of earnings reports to roll in, highlighted by the retail sector. Companies reporting this week include Kohl’s, Home Depot, Lowe’s, L. Brands, Target, BJ’s Wholesale, Gap, Macy’s, Nordstrom, and Foot Locker.

Looking at the aggregate earnings numbers so far, with 92% of the companies in the S&P 500 having reported actual results for the third-quarter of 2019, 75% have reported EPS (earnings per share) above estimates, which is above the 5-year average, according to data from FactSet. As always, please reach out to us with any questions you may have or if you would like to set up a meeting.

All the best – Southport Station Financial Management, LLC