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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending. This category’s grade will improve if and when the Trump legislation is passed.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). The Trump victory’s impact on the FED is not yet known. However, Trump made it clear during the campaign he did not have confidence in the present FED Chairperson.

BUSINESS PROFITABILITY: This factor’s grade is rated a B- (above average). Trump’s goal is a 4% growth rate for the U.S. economy. This will increase business profits significantly.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending. This category’s grade will improve if and when the Trump legislation is passed.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). The Trump victory’s impact on the FED is not yet known. However, Trump made it clear during the campaign he did not have confidence in the present FED Chairperson.

BUSINESS PROFITABILITY: This factor’s grade is rated a B- (above average). Trump’s goal is a 4% growth rate for the U.S. economy. This will increase business profits significantly.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Following the Federal Open Market Committee meeting last Wednesday; the Fed left monetary policy on hold. A quarter-point hike in the federal funds rate, to 0.5%-0.75%, is expected at the next meeting, on Dec. 13-14 and indicating the Fed probably will remain on a long and slow path to hiking rates.

BUSINESS PROFITABILITY: This factor’s grade is rated a B- (above average). FactSet Research says that with 85% of the companies in the Standard & Poor’s 500 index reporting, 71% beat earnings-per-share estimates. Third-quarter aggregate growth in per-share earnings is currently 2.7%, which would be the first quarterly rise since March 2015.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4.  These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). The FED’s recent meeting minutes indicates the Fed probably will remain on a long and slow path to hiking rates.

BUSINESS PROFITABILITY: This factor’s grade is rated a B- (above average). The 3^rd calendar quarter earnings will be released during the next 3 weeks. As usual, poor reports will lead to continued investor skittishness, but decent earnings will boost market confidence. And given how bad profit growth has been during the last 6 calendar quarters, we feel we do not need great earnings, just good enough earnings.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4.  These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Last week’s FED meeting means the Fed probably will remain on a long and slow path to hiking rates.

BUSINESS PROFITABILITY: This factor’s grade is increased to a B- (above average). The market’s valuation prices in an improvement in second-half earnings and an impressive rise in 2017 EPS for the S&P 500.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Last week’s FED meeting means the Fed probably will remain on a long and slow path to hiking rates.

BUSINESS PROFITABILITY: This factor’s grade is increased to a B- (above average). The market’s valuation prices in an improvement in second-half earnings and an impressive rise in 2017 EPS for the S&P 500.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Economic reports indicate the U.S. economy is improving.

BUSINESS PROFITABILITY: This factor’s grade is a C- (below average). So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period. Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period. This factor’s grade may be increased after more data becomes available.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Economic reports indicate the U.S. economy is improving.

BUSINESS PROFITABILITY: This factor’s grade is a C- (below average). So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period. Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period. This factor’s grade may be increased after more data becomes available.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.

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

CONSUMER SPENDING:  This grade is A- (very favorable).  Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES:  This factor is rated A (very favorable).  Economic reports indicate the U.S. economy is improving.

BUSINESS PROFITABILITY: This factor’s grade is a C- (below average).  So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period.  Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period.  This factor’s grade may be increased after more data becomes available.

OTHER CONCERNS:  The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis.  On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4.  These risks deserve our ongoing attention.

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

CONSUMER SPENDING: This grade is A- (very favorable). Favorable activity in the housing market continues to support growth in the level of spending.

THE FED AND ITS POLICIES: This factor is rated A (very favorable). Economic reports indicate the U.S. economy is improving.

BUSINESS PROFITABILITY: This factor’s grade is a C- (below average). So far this quarterly reporting period, quarterly profits are slightly ahead of expectations but down from the prior period. Looking ahead, comparable profits will be easier to beat, on average, because lower energy sector profits are in the base period. This factor’s grade may be increased after more data becomes available.

OTHER CONCERNS: The “Heat Map” is indicating the U.S. stock market is in OK shape ASSUMING no international crisis. On a scale of 1 to 10 with 10 being the highest level of crisis, we rate these international risks collectively as a 4. These risks deserve our ongoing attention.