Market Commentary, 03/13/17
US Stock indexes bounced off the lows of the day on Friday to finish moderately up. This tick upward is likely due to February’s payroll numbers, which reported 235,000 new jobs created in February. This represents a 23% increase over the expected 190,000 jobs.
Since the March 1st high, the Dow is down 1.1% closing at 20,881 and the S&P is down 0.9% closing at 2,373. This pullback has likely been spurred by the 9% fall in oil prices last week and the market pricing in the expected 0.25% interest rate increase by the Federal Reserve at Tuesday’s (3/14/17) March meeting. If implemented, this will be the 3rd rate increase since the Fed cut the rate essentially to zero in 2008.
As President Trump finishes his first 50 days in office, he is getting closer to the repeal and replacement of Obamacare. The expectation is the passing of this bill will continue the upward “Trump Effect” and relegate the pullback of the first two weeks of March to a “pause for consolidation.”
Wayne Copelin, CFP®
President, Copelin Financial Advisors, Inc.
514 Brooks Street
Sugar Land, TX 77478
Phone (281) 240-2902
Fax: (281) 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.