BETWEEN THE HEDGES: Today's Headlines

Bloomberg:

S&P 500 Surges for a Fourth Week. Waiting for an entry point in the stock market just isn’t working. The latest proof: amid the best start to a year ever measured in global equities, the S&P 500 has now spent longer trading within 5 percent of its all time high than ever before. Add it to the list of superlatives piling up in a market that has now done in a month what Wall Street thought would take a year. Rising 2.2 percent over the last five days, the benchmark sits at 2,872.87 -- higher than the average target of strategists tracked by Bloomberg as recently as December. Twenty-six days in and equities have yet to notch a down week. They’ve risen more than 7 percent and posted more up sessions -- 14 -- than any January since 1989. At these levels, stocks are nearing the most overbought point ever, making it hard for even the most bullish analysts to keep up. For the week, the S&P 500 rose 63 points. The Dow Jones Industrial Average added 545 to 26,616.71. The Nasdaq Composite Index climbed 2.3 percent to 7,505.77, bringing its year-to-date advance to 8.7 percent. The MSCI All-Country World Index increased 2.1 percent to 550.32, extending its 2018 gain to 7.3 percent to leave it on track for its largest January rally ever.

Nafta Said to Gain Steam With Agreement on Anti-Corruption Moves. Talks to update Nafta took a step forward after negotiators in Montreal agreed to measures aimed at preventing corruption, the first official “chapter” completed since October, said five people with knowledge of the process. The efforts to clamp down on graft and bribery had been pushed by Mexico as a new issue for the 24-year-old North American Free Trade Agreement. The measures were agreed to on Friday, according to the people, who asked not to be identified speaking before a public announcement.

Bankers, Policy Makers at Davos Revel in ‘Sweet Spot’ Economy. (video) The global elites have rediscovered their animal spirits. As the World Economic Forum drew to a close in the Swiss ski resort, the overarching mood of the executives, policy makers and investors was that their economies are in fine shape and that stock markets have every reason to extend their run. "Let’s celebrate what could go right for the moment because we are in a sweet spot," International Monetary Fund Managing Director Christine Lagarde said on the closing panel discussion.

Trump Moving On to Infrastructure Push. President Donald Trump plans to use Tuesday’s State of the Union address to build momentum for sweeping legislation on infrastructure and immigration that could buoy the White House and fellow Republicans ahead of crucial midterm elections. Emboldened by a booming economy and victory in his stare-down with Senate Democrats over government funding, Trump will make the case that the Republican tax cuts passed in December and his administration’s efforts to curb regulations are drawing investment to the U.S. and creating jobs, said a White House official who discussed the speech on condition of anonymity.

Wall Street Journal:

Trump to Call for Bipartisan Approach in Divided Washington. President’s first State of the Union address will come at a time of considerable rancor on Capitol Hill.

Medical Miracles From FDA Inefficiency. The economist behind the ‘priority review voucher,’ which advances treatments for neglected diseases.

Thank You for Tax Reform. Fourth quarter GDP shows the economy needed a growth boost.

Saudis Release Prince al-Waleed, One of the World’s Richest Men. Saudi officials say the prince reached a settlement that allows him to remain chairman of Kingdom Holding.

Barron's: