On the surface, casual observers would think that there were market moving events last week. They were wrong. On the political front, there was the Susan Rice controversy. That was irrelevant. Then there was the bombing of Syria after that nation’s dictator gassed his own civilians including children and babies. That horrific act had zero market impact. The follow up bombing of Syrian airfields by President Trump was not a negative, as some might wrongfully believe. However, it was a positive for defense stocks, especially Raytheon (RTN), manufacturer of Tomahawk missiles used in the attack.
On Wednesday, the markets moved higher on a strong ADP (ADP) jobs report. That was reversed after a Federal Reserve official stated that strengthening economic conditions would warrant a winding down of the Fed’s balance sheet. In other words; The Fed would remove liquidity from the economy. So, we went from a solid up day to a down day.
Friday’s disappointing Bureau of Labor Statistics monthly non-farm jobs release was disappointing. The report indicated gains of 89,000 which was far less than expectations of 179,000. The market reaction – a big yawn.
All told, the Standard & Poor’s 500 (SPX) declined 0.30% for the past week. More backing and filling in the bull market. The most exciting event of the week was the NCAA Men’s Basketball Final Game.
If you thought last week’s market action was a snoozer, this week will put you into a coma. Monday night begins the first two nights of Passover. Expect the early slide syndrome to begin after lunch on Monday. On Friday, markets are closed for Good Friday. Many schools and colleges are off for the week. So, it will be a big holiday vacation week. I have one order I am loading up for tomorrow morning and unless another ten plagues of biblical proportion are inflicted upon the markets, I plan to focus on holidays and visiting family. Next week will be more exciting as earnings start to kick into high gear and tax returns are due.
I want to end off with some great news. The Seton Hall Stillman School of Business CFA Institute Research Challenge team of Anthony Pescetto, John Gallagher, Jonathan Glincman, Katie McCarthy and Mark Moskwa was one of two teams to win the Americas’ regional final and will now compete in the Global Final 4 in Prague. The team was coached by the John Wooden of Finance, Chairman of the Department of Finance, and my academic mentor, Dr. Anthony Loviscek. I am without a doubt confident that Coach Loviscek and the Stillman Hall team will bring the trophy back to Seton Hall.
A ziessen Pesach (sweet Passover) to all.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long RTN, SSO and SPXL — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is also a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
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