US markets closed higher on Wednesday

01 Feb 2018 Evaluate

The US markets closed higher on Wednesday, after the Federal Reserve did nothing to discourage expectations for a March rate rise, but ended the session with modest gains while booking the biggest monthly rise since March 2016. Monthly gains for the S&P and the Dow were the strongest since March 2016. The US Federal Reserve kept interest rates unchanged but said inflation likely would rise this year, bolstering expectations borrowing costs will continue to climb under incoming central bank chief Jerome Powell. Citing solid gains in employment, household spending and capital investment, the Fed said it expected the economy to expand at a moderate pace and the labor market to remain strong in 2018. Still, the Fed left its benchmark short-term rate at a range of 1.25% to 1.5%. In December, the central bank projected it would raise rates three times in 2018. The central bank said in a statement following a two-day policy meeting, the last under Fed Chair Janet Yellen that inflation on a 12-month basis is expected to move up this year and to stabilize around the Fed’s 2 percent target over the medium term. It also said its rate-setting committee had unanimously selected Powell to succeed Yellen, effective February 3. Powell, a Fed governor who has worked closely with Yellen, was nominated by President Donald Trump and confirmed by the US Senate.

On the economy front, private-sector employment was strong for the second straight month in January, as employers added 234,000 jobs. Details of ADP’s report showed that small private-sector businesses added 58,000 jobs in January, medium-sized businesses added 91,000 and large businesses added 85,000. The cost of employing the average American worker - pay and benefits - posted the biggest 12-month gain in almost three years, reflecting the strongest labor market in decades. The employment cost index rose 0.6% in the fourth quarter. Wages - some 70% of employment costs - rose 0.5% in the final three months of 2017. So did benefits. In the 12 months ended in December, meanwhile, compensation climbed 2.6%, matching the biggest increase since early 2015. The last time compensation rose even faster was in 2008. Compensation grew even faster for the vast majority of Americans who work for privately run firms: 2.8%. That’s also the largest gain since 2008.

On the other hand, the Chicago PMI slipped 2.1 points to 65.7. That’s on a scale where any reading over 50 indicates improving conditions. The gauge was still very strong, backing a bit away from a nine-year high. The new-orders index fell to a five-month low in January.

The Dow Jones Industrial Average added 72.5 points or 0.28 percent to 26,149.39, the Nasdaq gained 9 points or 0.12 percent to 7,411.48, and the S&P 500 edged higher by 1.38 points or 0.05 percent to 2,823.81.

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About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
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