Stock Market Closed Mixed; Investors Weigh Trump Policies – Jan. 26, 2017

Daily Stock Market News Jan. 26, 2017:  Stocks closed mixed and little changed today after the release of a variety of economic data this morning.  Single family home sales dropped in December and new claims for unemployment benefits increased last week.  Republicans held a planning meeting in Philadelphia today, so investors are waiting to see what ideas come out of that meeting. They are hoping to see more infrastructure spending.  See details on today’s market news and the closing prices.

stock-market-graphic- stock market

U.S. Stock Market Closing Prices Jan. 26, 2017:

Dow Jones Industrial Averages:  20,100.91  +32.40  (+0.16 percent)

S & P 500:  2,296.68  -1.69  (-0.07 percent)

NASDAQ:  5,655.18  -1.16  (-0.02 percent)

Crude Oil:  $53.72 a barrel

Today’s Stock Market and Economic News:

Several economic reports were released this morning.  According to the Reuter’s article link below: “New U.S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth.  While other data on Thursday showed a bigger-than-expected increase in the number of Americans filing for unemployment benefits last week, the four-week moving average of claims dropped to levels last seen in 1973. There was also good news on the economy with the goods trade deficit falling in December as exports rose. With trade expected to have weighed on economic growth in the fourth quarter, last month’s rise in exports bodes well for growth in early 2017.”

You can learn more specifics about today’s economic news by clicking on the link below.

There are indications the GOP is concerned about the possibility of a recession sometime in the next few years, especially in the housing market.  As a result, one of President Trumps first acts was to eliminated an interest rate cut on PMI which had been put in place by the outgoing Obama administration.  This will particularly hurt first time home buyers.  Apparently, Trump and members of Congress fear that a downturn in housing prices could have caused the government to lose money on the mortgages they insure.

As Republicans get together in Philadelphia to meet today, a major concern for many investors around the world is the impact it could have on our country if we get into a trade war with China.

With all the uncertainty, many investors are expecting a volatile stock market in the coming year.  The Dow Jones closed over 20,000 for the first time ever yesterday.  This rally has been going on since 2009, the end of the last recession. It accelerated over the past few weeks.  There are sure to be bumps in the road, but how long will it last?  Will lower corporate taxes give this rally even more legs?

The Economic Record under the Past Few Presidents:


Median monthly jobs added
Obama:  186,000 a month
Bush:        61,000 a month
Clinton:  252,000 a month


Median yearly net wage growth
Obama:     2.2 percent
Bush:        3.3 percent
Clinton:    3.5 percent


Average of compound annual growth rate for S&P 500 Total Returns
Obama:   15.52
Bush:      -3.82
Clinton:   17.44

Last Year’s Stock Market and Economic Highlights for 2016:

If you wish to compare 2017 to 2016, here are a few of the most notable events in the stock market and the economy last year:

The Dow Jones Industrial Average rose 13.4 percent during 2016.

The S&P 500 climbed over 9 percent in 2016.

The Nasdaq was up over 7 percent during the year.

Average hourly wages were up over 2.4 percent during the year.

Unemployment dropped to 4.7 percent by the end of 2016.

Over 2 million new jobs were added to the economy during the 2016 (11.3 million jobs created during the Obama administration, with job growth for a record 75 straight months).

In 2016, auto sales hit a new record high of 17.5 million.

Resources: / MSN Money / Market Watch / YahooFinance / Bloomberg / Reuters / Wall Street Journal and other public news sources

Statistics on the past three presidential administrations:

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