While much of Wall Street is still enjoying the holiday season, there will be a fair amount of action for market participants to digest today.
First, I'd be remiss if I didn't acknowledge the way Ms. Market began the year. I believe the saying is, "As the first trading day of the year goes"... ah, you know the rest. (And c'mon, admit it; you checked your account values after yesterday's close, right?)
Looking ahead to today, we have two more companies - American Airlines and Southwest Airlines - providing $1000 bonuses to their employees in response to the new tax law. Personally, I think this will be important input to consider in terms of wage inflation if it catches on and becomes a national trend.
The Key Q: If bonuses becomes a trend, will bond investors panic or recognize the temporary nature of the wage pressure? Or... will the bonuses themselves become a trigger for the wage pressures that economists have been looking for? Stay tuned!
Next, we've got the release of the minutes from the latest Fed meeting this afternoon. Lest we forget, Fed policy remains uber-important to the bond market these days.
And finally, there is the politicking going over keeping the government funded after January 19. The latest wrinkle has Mr. Trump demanding that any deal on spending must include funding for his border wall with Mexico. From my seat, this is the most important near-term issue to watch as the threat of a gov't shutdown could easily trigger some volatility.
But for now, the key is to recognize that the trend is definitely a friend to stock market investors.
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