Tax Reform: Driving Earnings Expectations Higher

Stocks continued their surge higher last week. The S&P 500 rose another 2.2 percent, making it four straight weeks of gains and a 7.5 percent return to start the year. Giving a big boost to multinationals was the ongoing weakness in the dollar. The DXY index fell 1.7 percent last week in a move that was exacerbated by comments from Treasury Secretary Mnuchin at the World Economic Forum in Davos suggesting a weak dollar policy from the administration in Washington. Despite subsequent pushback from the President, the dollar index finished the week at its lowest level in three years. For the year, the DXY is down 3.4 percent, after a 10 percent decline last year.



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