There will be a lot of things going on this week. On Wednesday, Janet Yellen will be making her last public statement. This could impact markets because, with this being her last meeting, it’s difficult to predict what she will discuss. On Tuesday, there will be the State of Union address by the president. Some people believe President Trump had a productive meeting in Switzerland over the weekend. It will be interesting to see if he carries that momentum into this speech on Tuesday.
One hundred of the S&P 500’s largest companies in the U.S. will report earnings this week. This could serve as the “super bowl” category of the week. Something to keep an eye on, with the new tax bill, is if companies will be incentivized to realize losses for last year. Will they pull forward losses to realize them in a higher tax environment in 2017? Also, it’s important to see how companies project the benefits moving forward. This could be extremely impactful.
Manufacturing & Equipment
The tax reform is really helping manufacturers buy more equipment at a faster pace. We are seeing that they are either accelerating purchases or increasing the quantity on pending purchases. The growth of these particular purchases is north of 12%. This is showing a lot of optimism that could lead way to potential growth in the economy.
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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