Stocks remain strong Friday after posting a fresh new record high, the first for the Dow (DJI) since January 26. The big rally continues to come on signs of improving fundamentals, writes Nell Sloane Friday.

Thursday’s economic data, showed that first-time jobless claims fell by -3,000 last week, dropping to their lowest level since November 1969.

Separately, the Philadelphia Fed manufacturing index jumped more than expected in September, rising to 22.9 from 11.9 in the previous month, further confirming additional strength.
Again, strong U.S. economic data continues to overpower negative headlines involving Washington.

Macro traders are also keeping a close eye on the recent weakness in the U.S. dollar (USD). Most insiders are wondering if this is just temporary weakness or a trend changing shift? There’s also some interesting talk among the bears that the recent all-time high in the stock market might give President Trump the feeling or perception he has more room to get a lot tougher in negotiating with the Chinese. If that proves to be the case, perhaps some more difficult headlines could appear out on the horizon.

The latest Fed decision is scheduled to be released next Wednesday. Most suspect rates will again move higher, any comments about the future will be highly scrutinized.

The same day President Trump will be holding a meeting with the UN regarding Iran; Italy is supposed to release groundwork for a fairly important budget, and we might also see headlines from the upcoming U.S.-Chinese trade talks. That is if the Chinese actually come to the meeting.

There’s also some talk that President Trump might make some comments that put the final $267 million of tariffs into motion. Not that they will go immediately into play, but at least ran through the political process and turned into live ammunition.

There are also several balls in the air involving NAFTA. Still not looking for a resolution until after the polls close on the upcoming Quebec election.

Cheers,
Nell

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