Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through December 8th

US stocks sank over the week as concerns about the global economy and the US/China trade relationship weighed on stocks.  The Dow sank 4.5% and the S&P 500 dropped 4.6% for the week.  Abroad, Japan declined 3.0% and Europe fell 3.4% for the week.  The yield on the 10-year Treasury declined as investors moved to safe havens to finish the week at 2.85%.  It’s lowest level since the end of August.

The November jobs reports came in slightly below expectations with 155,000 new hires.  The unemployment rate remained at 3.7%.  Wage growth over the trailing year stayed at 3.1%.

After a meeting at the G20 summit the US announced it will postpone its increase in tariffs, that were set to go into effect at the end of the year, by 90 days.  However, conflicting accounts emerged from of the meeting which sent markets tumbling.

The US is extraditing the CFO of Huawei Technologies, a major Chinese tech company, over alleged violations of Iran sanctions throwing the future of US/China trade talks into question.

OPEC and Russia agreed to cut production by 1.2 million barrels a day.  The announcement sent oil 2.2% higher to end the week at $52.61 a barrel.

The November jobs reports came in slightly below expectations with 155,000 new hires.  The unemployment rate remained at 3.7%.  Wage growth over the trailing year stayed at 3.1%.

 

Financial News and Portfolio Management Discussion through December 1st

US stocks surged over the week driven by dovish comments by the Fed Chairmen.  The S&P 500 climbed 4.8% and the Dow jumped 5.2% for the week.  Abroad, Japan gained 3.3% and Europe rose 1.0% for the week.  The yield on the 10-year Treasury ended the week down at 3.01%, at its lowest level since mid-September.  Oil briefly fell below $50 a barrel before ending the week at $50.93.  Oil fell 22% for the month.

In a speech, Fed Chief Powell said the Fed Funds Rate was “just below” a neutral level easing investor worries that the Fed would continue to raise rates aggressively.

EU leaders approved the deal worked out with the UK to exit the EU.  However, there is much opposition within the UK to the deal.

President Trump made comments before meeting with Chinese leaders that he expects to move forward with boosting tariffs on $200 billion of goods to 25% at the end of the year.

The ECB plans to move forward with ending its bond buying program at the end of the year despite weakening growth trend in the EU.

Home price gains slowed for the 6th straight month in September.  They gained 5.5% over the past 12 months.

GM announced it is closing several production plants and cutting 15% of its salaried employees in North America in an effort to restructure.

 

Financial News and Portfolio Management Discussion through November 24th

US Stocks sank on the fall of oil prices.  The S&P 500 sank 3.8% and the Dow dropped 4.4% for the week.  Internationally, Japan edged down 0.2% and Europe was off 1.0% for the week. The yield on the 10-year Treasury fell to end the week at 3.05%, its lowest level since mid-September, as inflation concerns eased.  Oil prices fell 7.7% on Friday to end the week at $50.42 a barrel, its lowest level in over a year.  Increasing supply, particularly from the US, is intersecting with weaker global economic growth to drive down prices.

Nissan’s chairmen and auto industry titan, Carlos Ghosn, was arrested in Japan over allegations he under reported his pay.  He has been removed as chairmen due to the allegations.

Financial News and Portfolio Management Discussion through November 17th

Stocks posted their first weekly loss of the month on weak earnings on concerns about growth.  The S&P 500 fell 1.6% and the Dow sank 2.2% for the week.  Abroad, Japan plunged 2.6% and Europe dropped 2.2% for the week.  The yield on the 10-year Treasury fell over the weak on concerns about future growth settling at 3.07%.  Oil continued its fall ending the week at $56.46 a barrel down 25% since early October.

The UK and EU were able to reach a draft deal to allow the UK’s exit from the Eurozone, but six high level members of the UK government resigned over the proposed agreement throwing Prime Minster May’s leadership and the draft agreement into question.

Talks between the US and China were reopened prior to a meeting between Trump and Chinese President Xi Jinping.

Inflation picked up in October with the CPI gaining 0.3% and 2.5% from a year earlier.

Recent data has shown the global economic growth has slowed.  GDP in Japan contracted 1.2% in the third quarter.  In Germany GDP contracted 0.8% in the third quarter for the first quarterly drop in three and a half years.  Consumer spending in China hit its lowest pace in five months.

Retail spending in the US rose 0.8% in October, well outpacing estimates.

US industrial output in October fell short of expectations.

SAP agreed to purchase Qualtrics International for $8 billion.

Amazon selected the New York City region and Northern Virginia as its two sites for its second headquarters.

Financial News and Portfolio Management Discussion through November 10th

US stocks gained over the week on a positive reaction to the midterm elections.  The S&P 500 rose 2.1% and the Dow gained 2.8% for the week.  Internationally, Europe gained 0.5% and Japan was flat over the week.   Oil finished the week at $60.09 a barrel, posting 10 straight days of losses.  It’s the longest losing streak since 1984 as supply is at a five-month high.  The yield on the 10-year Treasury edged down over the week to finish at 3.19%.

At the conclusion of the Fed’s meeting they made no changes to the Fed Funds Rate, gave a positive outlook on the economy and strongly hinted at a December rate hike.  They also expect to raise rates between two and four times in 2019.

Analysts are projecting 6% profit growth in the first two quarter of 2019.