How is your portfolio handling the volatile market of 2019?
Markets: It was another up week for the market, with investors upbeat on U.S.-China trade talks, and ignoring the government shutdown, which is now the longest one in U.S. history. This was the third straight positive week for the market, and it was broad-based, with all sectors except defensive Utilities rising.
Major world stock markets climbed on Tuesday on hopes of more stimulus for China’s economy, while sterling rebounded from the day’s lows after British lawmakers defeated Prime Minister Theresa May’s deal on withdrawing from the European Union. May’s crushing loss, the first British parliamentary defeat of a treaty since 1864, marks the collapse of her two-year strategy of forging an amicable divorce maintaining close ties to the EU after the March 29 exit.
"After the big defeat, which was even larger than what the market had expected, we might getting closer to a no-Brexit scenario. The pound has retraced some of its losses after that vote, which was not unexpected. It may also simply be short-covering,” said Eric Stein, co-director of global income group at Eaton Vance in Boston. (Reuters)
“U.S. stocks rose again on Friday and had for their fourth week of gains on hopes that a bitter trade war between the United States and China would be resolved and after upbeat monthly manufacturing data. European shares rose on Friday, hitting their highest level since early December as renewed hopes for trade negotiations between the United States and China lifted markets from Wall Street to Beijing.” (Reuters)
High Dividend Stocks: These high yield stocks go ex-dividend next week – SUNS, PBA.
Volatility: The VIX fell 2.14%% this week, ending at $17.80.
Currency: The U.S. reversed course again this week, and rose vs. most major currencies, except the pound.
Market Breadth: 26 DOW 30 stocks fell this week, vs. 25 rising last week. 90% of the S&P 500 rose this week, vs. 90% rise last week.
Economic News:
Britain’s biggest carmaker Jaguar Land Rover (JLR) urged lawmakers to rule out the possibility that the country leaves the European Union without a deal, to prevent companies from having to make costly contingency planning. JLR said it regretted the parliamentary vote on Tuesday when lawmakers rejected by a huge margin Prime Minister Theresa May’s deal for leaving the bloc.
"We are disappointed with the vote on the Brexit deal and are considering its implications,” the company said in a statement. “We would now urge ruling out a no-deal immediately as the only option with unanimous support in parliament." (Reuters)
Consumer Sentiment fell to 90.7, far below the forecast of 97.5.
Week Ahead Highlights: The Q4 ’18 earnings season continues next week, with DOW 30 stocks reporting, including JNJ, PG, UTX, IBM and CAT.
U.S. Markets will be closed Monday, in observance of the Martin Luther King Jr. holiday.
Next Week’s U.S. Economic Reports: Some of the economic reports due out next week may be delayed, due to the government
Sectors: Real Estate and Industrials led the pack this week, with defensive Utilities and Consumer Staples trailing.
Futures:
WTI Crude rose 4.65% this week, finishing the week at $53.99, on reports of less production, while Natural Gas rose 10.45%.
