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.