The Strength of the Market is: Strong
Last week, turbulence entered the stock market with a White House proposal to significantly increase taxes on capital gains - although, only for individuals earning $1 Million or more per year. As this tax increase would only apply to a small portion of investors, stock prices still finished the week at near-record highs.
Economic reports from last week came back almost all positive:
•Jobless Claims - better than expectation •National Activity - better than expectation •Manufacturing (Kansas City) - better than expectation •New Home Sales - better than expectation
•Existing Home Sales - worse than expectation
This week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Confidence & Sentiment and Jobless Claims.