Will stocks keep the momentum going in 2018?
Maxfunds.com co-founder Jonas Max Ferris and Kadina Group President Gary B. Smith discuss the market outlook for 2018.
Stocks were higher on Wednesday, with the S&P 500 and the Nasdaq setting new record highs in early trading, as traders digested and prepared for the latest economic data.
If the Dow Jones Industrial Average can gather considerable momentum on Wednesday, it could reach the 25,000 point milestone.
On Tuesday, the first trading session of 2018, stocks closed higher with the S&P 500, Nasdaq, Russell 2000 and the Dow Transports finishing in record territory.
While the economic data calendar has been fairly light in recent weeks due to the winter holidays, a few releases were due out on Wednesday. Mortgage applications and auto sales were released before the bell, while manufacturing data and construction spending were reported during the morning session. The highlight, however, will be the minutes from the latest Federal Reserve meeting, due out Wednesday afternoon.
The Fed increased interest rates at its last meeting in December. It was the third interest rate hike of 2017. Investors will look to the latest Fed meeting minutes for further clues into the timing and amount of rate hikes that could occur in 2018. Fed leadership will change this February, with current Chair Janet Yellen’s term ending and Jerome Powell set to take over.
Meanwhile, traders are awaiting the December jobs report, which will be released on Friday. It is expected that the U.S. economy will have finished 2017 continuing its trend of solid jobs growth. But, economists will be eager to see if wages have started to see a considerable increase.
Relatively stagnant wages have been somewhat surprising given the tight labor market.