Tags: Trump Administration | Byron | Wien | Earnings | Trump | Stock | Market

Byron Wien: Robust Earnings, Not Trump, Fueling Market Records

Byron Wien (Blackstone.com)

By    |   Tuesday, 16 May 2017 10:17 AM

Investment strategist Byron Wien said robust corporate earnings are propelling the stock market seemingly to daily record highs as investor hope for President Donald Trump’s economic-growth goals seem to be stalled for the moment.

"At the beginning of the year, I thought the Trump pro-growth program was propelling the market," Wien, vice chairman of the private wealth solutions group at Blackstone, told CNBC.

"But now, we have a situation where it looks like he'll get very little of his pro-growth agenda through, but earnings are coming in better than expected, and that's driving the market higher," Wien said.

"I thought the market was ahead of itself, but earnings are coming in better than expected, and that's keeping the correction from happening," Wien said.

"I'm worried that the Trump administration gets itself into trouble," he said. "Right now it's not doing any good, but it's not doing any bad either. So I'm just worried that there's a shift, and we lose confidence in Washington."

Wien continues to believe that the S&P 500 will rise to 2,500 this year.

To be sure, the S&P 500 and the Nasdaq drifted higher to hit record intraday levels on Tuesday, supported by gains in technology and consumer staple stocks, Reuters reported.

As the first-quarter earnings season wraps up, investors' attention will turn to developments in Washington that could overshadow Republican legislative priorities such as tax reform, healthcare and simpler regulations.

Investors were wary after reports that Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.

However, strong earnings including those of Dow component Home Depot, pushed markets higher. The No. 1 U.S. home improvement chain reported a higher-than-expected quarterly profit, sending its shares up 2.1 percent $160.68.

While earnings continue to support the indexes, global geopolitical tensions and domestic political developments could unsettle the market's record-setting spree.

"New accusations against Trump on intelligent secrets if expanded will be the catalyst to ignite a perfect storm (in the market)," Peter Cardillo, chief market economist at First standard Financial, wrote in a note.

(Newsmax wire services and the AP contributed to this report).
 
Related Stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Investment strategist Byron Wien said robust corporate earnings are propelling the stock market seemingly to daily record highs as investor hope for President Donald Trump's economic-growth goals seem to be stalled for the moment.
Byron, Wien, Earnings, Trump, Stock, Market, Records
352
2017-17-16
Tuesday, 16 May 2017 10:17 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved