Mike’s Morning Brief – October 18, 2017

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Mike’s Morning Brief: A fast-break rundown of what’s going on.

Market opens in the green again, punching thru DOW 23K for the first time yesterday. IBM is leading the charge this morning as Big Blue reported a better than expected Qtr suggesting a turnaround is in place. IBM accounts for 84 of the 111 points on the DOW in early trading. Interestingly, the Tech-heavy NAS is in the red at the open. China began its formal leadership transition today. The grand plan is a “modern socialist country that is open to the world”. The word “open” is an interesting one here.  The White House continues to refer to China as a currency manipulator. Trump’s team continues to market the tax plan but seem to be conceding that it won’t happen this year. Our feeling is the Market anticipates a tax deal early next year, not in 2017. NAFTA discussions will continue in 2018, as US, Canadian and Mexican leaders are far away from a deal. Earnings Season continues with a very positive tone. Crude prices are remaining elevated with WTI at $52. Interest rates are creeping higher too, with the 10-year Treasury yield at 2.3%. But for now, it’s all about stocks and a rally that just doesn’t want to rest, despite so many external issues and cross-currents to slow it down. No breather yet. It’s not normal. Then again, nothing about 2017 has been normal…

Have a great morning,

Mike Frazier

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