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 grade this factor a C (neutral).  This is a downgrade from the prior week
due to weakness noted in retail activity. 
See more information under “The Economy” below.

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 continue to grade this factor an A (very favorable).  We are now in
the midst of earnings reporting season for the quarter ending 12/31/13.

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 grade this factor a B- (slightly favorable). 

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 continue to grade this factor an A (very favorable).  We are now in the midst of earnings reporting season for the quarter ending 12/31/13.  So far, the blended earnings-growth rate for S&P 500 companies in the fourth quarter, comprising actual results and estimates for companies yet to report, is 6.4%, according to FactSet Research as reported in Barrons Online. We will maintain our “A” rating if this +6.4% holds up.

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 grade this factor a B- (slightly favorable).  This was upgraded from the last Weekly
Commentary edition because of Holiday spending levels and the other factors
discussed under “The Economy” below. 

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. 10 days ago, the FED finessed
the markets by carefully wording its press release announcing the taper of its
quantitative easing program – more good news!

BUSINESS
PROFITABILITY:  I continue to grade this factor an A (very favorable).  We are now in the early part of earnings
reporting season for the quarter ending 12/31/13.  At this point, the results are mix – it is
too early to change the grade.

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 grade this factor a C (neutral).  This is under review for possible upgrade
depending upon the evaluating the results of the Holiday season retail
spending.

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. 10 days ago, the FED finessed
the markets by carefully wording its press release announcing the taper of its
quantitative easing program – more good news!

BUSINESS PROFITABILITY:  I continue to grade this factor an A (very favorable). 

NOTE:  the above grades are unchanged from last
week.

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 grade this factor a C (neutral).

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 continue to grade this factor an A (very favorable). 

NOTE:  the above grades are unchanged from last
week.

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 grade this factor a C (neutral).

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 continue to grade this factor an A (very favorable). 

 NOTE:  the above grades are unchanged from last
week.

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 grade this factor a C (neutral).

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 continue to grade this factor an A (very favorable). 

NOTE: 
the above grades are unchanged from last week.