Stock Market News: 12/16/17

Market Breadth: 24 of the DOW 30 stocks rose this week, vs. 15 last week. 47% of the S&P 500 rose, vs. 55% last week.

Economic News: “Underlying U.S. consumer inflation slowed in November amid weak healthcare costs and the biggest drop in apparel prices since 1998. The annual increase in the core CPI slowed to 1.7 percent in November from 1.8 percent in October.

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The Feds preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, has consistently undershot the U.S. central banks 2 percent target for almost 5-1/2 years. The cost of healthcare services slipped 0.1 percent, the first drop since May. The cost of doctor visits fell 0.8 percent last month. In the 12 months through November, the price of doctor visits fell 1.8 percent, the biggest decline since records started in 1947.”

“Apparel prices dropped 1.3%, the largest drop since September 1998. New motor vehicle prices rose 0.3% after two straight monthly declines.” (Source: Reuters)

“On Thursday. No one expected Mario Draghi, the bank's president, to drop any bombshells when he faced reporters after the bank’s final meeting of 2017. But there were lots of questions about what will be coming in the New Year.

It could be a watershed. The central bank’s own economists substantially raised their estimates for eurozone growth, portending an end to the crisis measures that have been in place in the 19-nation common currency area since 2008. That would usher in a new era, with monetary policy returning to normal and the central bank beginning to gently push up interest rates.

Mr. Draghi’s news conference on Thursday revolved around how soon the stimulus measures might end. While he said there has been significant improvement in the growth outlook, he steadfastly avoided any statements that would change investor expectations. Still, Mr. Draghi offered a few clues about the central banks evolving views.

Here are some of the key takeaways.

The Governing Council did not change its stance on Thursday, repeating that it can step up the stimulus measures at any time if the eurozone economy starts to flag. That's a sign that interest rate increases are still far in the future.The eurozone economy is humming. In new estimates published Thursday, the European Central Bank's economists said economic growth would accelerate to 2.3% in 2018. That compares to their estimate in September of 1.8%.

The Bank of England raised its benchmark rate in November for the first time in a decade.” (Source: NY Times)

Week Ahead Highlights: The market will be watching the progress of the Tax bill closely, not only for its ultimate fate, but also for new details, as they relate to the investing world.