Markets: The market mostly shrugged off the Fed rate hike this past week, with the Dow rising a bit, the S&P 500 and NASDAQ both flat, but the Russell 2000 fell 1.74%, as small caps faded. This was a welcome contrast to last December’s rate hike, after which the market fell 3.3% in the days after the hike. Clearly, investors feel that the economy can now withstand a rate hike.
High Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Capitala Fi (NASDAQ:CPTA), Fs Investmt (NYSE:FSIC), Las Vegas Sands Corp (NYSE:LVS), Seagate Technology PLC (NASDAQ:STX), PennantPark Investment Corporation (NASDAQ:PNNT), American Capital (NASDAQ:ACSF), Ladder Cptl (NYSE:LADR).
Boeing (NYSE:BA) is raising its quarterly dividend 30%, to $1.42 a share. It yields around 3.7%, and also has attractive options yields – it’s listed in our Covered Calls and Cash Secured Puts tables.
Volatility: The VIX rose by 3.8% this week, finishing at $12.20.
Currency: The US dollar rose vs. most major currencies this past week, in the wake of the Fed’s rate hike.
Market Breadth: 19 of the Dow 30 stocks rose this week, vs. 28 last week. 40% of the S&P 500 rose this week, vs. 91% last week.
US Economic News: The Fed raised its rate .25%, as expected, but forecasted three more rate hikes for 2017…sounds familiar – they forecasted 3-4 hikes for 2016, but only did 1 hike. The Empire NY and the Philly Fed Manufacturing Indexes both surprised to the upside this week. Housing starts fell nearly 19%.
Week Ahead Highlights: It’ll be a full trading week for equities, but the market will be closed on Monday, Dec. 26th. We’ll get another look at Q3 GDP, and Housing will be highlighted, with New and Existing Home Sales reports due out.
Next Week’s US Economic Reports:
Sectors & Futures: Telecoms, Financials and Tech led this week, as all sectors gained again – HealthCare trailed.
Natural Gas trailed week, while Crude Oil gained 1%…Lean Hogs futures led:
