Investors Keeping an eye on Oil and the Strength of the Economy

11/29/2016

U.S. equities climbed another 1.4 percent last week, rising each day of the holiday shortened week. The S&P 500 has now gained 3.4 percent since the election. At the sector level, last week’s rise was once again in character with the nature of the rally since the election. Materials and industrials led the way, followed closely by energy and consumer discretionary stocks. Notably, however, the interest rate sensitive groups also fared well, on the leveling off of the surge in bond yields. Telecom, utilities, staples and REITs all enjoyed a strong rebound from their earlier weakness. In fact, only healthcare stocks failed to rise last week, suffering only a fractional loss, however.

Increased Pressure in the Bond Market Looms

11/22/2016

Since the U. S. presidential election, the S&P 500 is higher by 2 percent. And, understandably, there has been a lot of focus on the sector winners and losers and the impact of policy under a new administration. But the real story has taken place in the bond market. The yield on the ten-year Treasury note is higher by 50 basis points after climbing another 20 last week. At 2.35 percent, the yield is the highest since July, 2015. That move equates to a price decline in excess of 4 percent in just seven trading days.

Markets Soar on the Election Outcome: How Long can it Last?

11/14/2016
The market reaction to the U.S. presidential election has been swift and telling. In the three days since, the S&P 500 has climbed 1.2 percent, but it is the reaction at the sector level that tells the story of what investors expect from a Trump administration. Financial stocks have soared 8.4 percent, while the KBW banking index has climbed a stunning 10 percent in anticipation of a less onerous regulatory environment and higher interest rates. Industrial stocks have climbed 4.9 percent due to expectations of increased spending on infrastructure and defense, and healthcare has added 3.1 percent on the diminished likelihood of drug price controls.

Post-Election Q&A with David Joy and Russell Price

11/09/2016
Ameriprise Financial Chief Market Strategist David Joy and Senior Economist Russell Price respond to questions and provide perspective on what the results of Tuesday’s U.S. election may mean for markets and the economy.

On the Brink of a Historic Election: What Could it Mean for Markets?

11/07/2016

It seems almost superfluous to write anything about markets before knowing the election results, presumably on Tuesday evening. Nine straight days of lower equity prices in the U.S., for the first time since 1980, attest to the anxiety investors are experiencing as the day of reckoning finally arrives. During that time the S&P 500 is down 3.1 percent, and while no sector is higher, the worst of the selling has been concentrated in healthcare, consumer discretionary and energy stocks.