Despite the $32.9-billion hit the top five banks took in their fourth-quarter earnings, US banks (XLF) are generally very positive about the new tax plan.
Last week, US stocks closed the week on a very strong note mainly driven by strong earnings growth. All 11 sectors in SPY reported positive earnings growth.
SPY continued to be the big winner of the week with inflows of $7.8 billion. SPY’s total assets under management have reached $292 billion.
Morgan Stanley (MS) reported an EPS of $0.84 in 4Q17. Its earnings exclude a one-time $990 million hit resulting from recent changes to the US tax code.
Despite the fear of a federal government shutdown, stocks moved higher last week. The S&P 500 Index (SPX-INDEX) (SPY) rose 0.86% and closed at 2,810.30.
So far, 2018 has been good for US-listed ETFs. The first week of the year saw inflows of $5.32 billion. The second week was even better.
JPMorgan Chase (JPM) reported an adjusted EPS (earnings per share) of $1.76 in 4Q17—compared to analysts’ expectation of $1.69.
The healthcare and financials sectors led the gains in the broader indexes last week. The S&P 500 Index (SPX-INDEX) (SPY) rose 1.6% and closed at 2,786.24.
ETFs started 2018 on a very promising note. According to FactSet, the total ETF inflows amounted to $5.32 billion for the first week of the year.
The total equity underwriting proceeds for the five largest US investment banks (XLF) rose from $55.7 billion in 4Q16 to $60.4 billion in 4Q17.