- Still a lot to like about tech. The technology sector may remain volatile around internet privacy issues and valuation concerns, and while we pared exposure in many of our portfolios in recent months, we still see a lot to like. Recent weakness has brought the sector’s relative valuations down to a reasonable premium (<10%) versus the S&P 500 Index on a forward price-to-earnings ratio basis, aided by strong earnings growth–consensus is calling for a 23% year-over-year increase for the first quarter and 18% for 2018 (Thomson Reuters data). In addition, repatriation will enable the sector to put its massive cash hoards to work. From a technical analysis perspective, sometimes the best-performing groups correct last, so the latest downdraft in technology may actually be an indication that the stock market correction that began in late January is running its course.
- Final read on fourth quarter GDP revised higher. The third and final estimate of fourth quarter U.S. gross domestic product (GDP) was upwardly revised by 0.4% to a 2.9% annualized rate, beating consensus estimates (2.5%). Surging imports (+0.1% to +14.0%) continued to drag on growth but was offset primarily by 4.0% growth in consumer spending (+0.2% from prior estimate). And while three months of declining retail sales suggest consumers’ support could wane modestly in the first quarter data, recently passed fiscal stimulus may still propel the economy to grow by at least 3.0% this year.
- Time for April showers? We generally have to put up with a rainy April to enjoy beautiful flowers in May. That begs the question: Will it rain on the bulls this April? We’ll discuss the likelihood on the LPL Research blog later today.
- MBA Mortgage Applications (Mar 23)
- GDP (Q4)
- Advance Goods Trade Balance (Feb)
- Wholesale Inventories (Feb)
- Retail Inventories (Feb)
- Pending Home Sales (Feb)
- Germany: Consumer Confidence (Apr)
- France: Consumer Confidence (Mar)
- Italy: Industrial Sales & Orders (Jan)
- UK: Consumer Confidence (Mar)
- UK: Lloyds Business Barometer (Mar)
- China BOP: Current Account Balance (Q4)
- Japan: Retail Sales (Feb)
- PCE (Feb)
- Core PCE (Feb)
- Personal Income & Spending (Feb)
- Weekly Jobless Claims (Mar 24)
- Chicago Purchasing Manager’s Index (Mar)
- U of Mich. Sentiment (Mar)
- Harker (Hawk)
- Germany: CPI (Mar)
- Germany: Unemployment Change (Mar)
- Italy: PPI (Feb)
- UK: Money Supply (Feb)
- UK: GDP (Q4)
- Turkey: GDP (Q4)
- Canada: GDP (Jan)
- Japan: CPI (Mar)
- Japan Industrial Production (Feb)
- Good Friday
- France: CPI & PPI (Feb)
- Italy: CPI (Mar)
- UK: Consumer Confidence (Mar)
- Japan: Housing Starts (Feb)
- China: Manufacturing & Non-Manufacturing PMI (Mar)
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