Markets: The market had its worst yearly starting week ever, in spite of a very strong US Jobs report, as global economic fears, China’s stock market turmoil, and falling crude oil prices hastened a selloff. The Russell small caps took the biggest hit, but this was the worst yearly start ever for the S&P 500 and the Dow. This was the biggest 1-week loss since September 2011.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: O:HCAP, N:POT, N:AP, N:ARR, N:CLDT, N:DOC, N:OAKS, N:PIR.
Volatility: The VIX soared 48% this week, finishing at 427.01, its highest close since late Sept.
Currency: The US dollar rose vs. most major currencies this week, except the yen. The dollar was boosted by a solid US Jobs Report.
Market Breadth: Only 1 of the DOW 30 stocks rose this week, vs. 4 last week. 7% of the S&P 500 rose this week, vs. 23% last week.
US Economic News: December layoffs were the lowest in 15 years. December Non-Farm Payrolls surged to the upside, and November’s payroll number was revised upward to 252K, from 211K.
Employment gains occurred in several industries, led by professional and business services, construction, health care, and food services and drinking places. Mining employment continued to decline. The Unemployment rate remained at 5%, in spite of the large payroll gains, due to 500,000 more persons entering the workforce in December.
Week Ahead Highlights: Q4 Earnings season starts next week, with Alcoa (N:AA), Intel (O:INTC), Citigroup (N:C), and Wells Fargo (N:WFC) reporting, among others. December Retail Sales figures come out on Friday.
Next Week’s US Economic Reports:
Sectors and Futures:
All sectors were in the red this week, with Utilities falling the least, as Basic Materials trailed.
Natural Gas Futures led this week, with Gasoline trailing:
