The “Heat Map”

Most of the time the U.S. stock market looks to 3 factors (call them the “pillars” that support the stock market) to support its upward trend – let’s grade each of the pillars. 

CONSUMER SPENDING:  I have upgraded this factor to B (above average) based upon the increase in retail sales as reported in recent economic reports.

THE FED AND ITS POLICIES:  I continue to grade this factor an A+ (extremely favorable) because the FED cannot do much more than it is doing to support the stock market and asset prices.

BUSINESS PROFITABILITY:  I rate this factor B- (slightly above average). U.S. corporations are in the midst of the first quarter’s earnings reporting season.  Earnings appear to be average; but, keeping in mind the horrible winter, “average” is quite the achievement.

This entry was posted in $1$s. Bookmark the permalink.