Markets: It was a largely flat week for the market, with lower expectations for a quick solution to U.S.-China trade relations. But indexes were saved from a negative week by a Friday rally after Congress and the administration agreed to advance a three-week stop-gap spending plan to reopen the government.
High Dividend Stocks: These high yield stocks go ex-dividend next week - CLDT, CLNC, EPD, GEL, OHI, ORC, PSEC, TGLS, TLP, VET, AM, EQM.
Volatility: The VIX fell -2.13%% this week, ending at $17.42.
Currency: The U.S. fell vs. most major currencies this week.
Market Breadth: 23 DOW 30 stocks fell this week, vs. 26 rising last week. 78% of the S&P 500 rose this week, vs. 90% rise last week.
Economic News:
The number of people in work in the U.K. has reached a record high of 32.54 million, in the latest figures from the Office of National Statistics. Unemployment was flat, with a small increase of 8,000 between September and November for a total of 1.37 million. Average earnings excluding bonuses increased by 3.3% in the year to November, as wage rises continued to outpace inflation. The number of job vacancies rose by 10,000 to a record high of 853,000.
ONS head of labour market David Freeman said: “The number of people working grew again, with the share of the population in work now the highest on record. Meanwhile, the share of the workforce looking for work and unable to find it remains at its lowest for over 40 years, helped by a record number of job vacancies. “Wage growth continues to outpace inflation, which fell back slightly in the latest month. (BBC World News)
"Commerce Secretary Wilbur Ross downplayed expectations for an end to the U.S.-China trade war when both sides meet in Washington next week, saying the world’s two largest economies are a long way from resolving their differences. “We’re miles and miles from getting a resolution,” he said in an interview on CNBC on Thursday. “Trade is very complicated. There are lots and lots of issues.”
Chinese Vice Premier Liu He is scheduled to meet next week in Washington with U.S. Trade Representative Robert Lighthizer.
“People shouldn’t think that the events of next week are going to be the solution to all of the issues between the United States and China. It’s too complicated a topic,” Ross said. “I believe that China would like to make a deal. I believe that we would like to make a deal. But it has to be a deal that works for both parties.” His comments come with just over five weeks to go before a deadline to conclude a deal.
The IMF this week downgraded its global outlook for the second time in three months, warning of mounting risks including an escalation of the trade war and tightening credit.
Week Ahead Highlights: The Q4 ’18 earnings season heats up next week, with 13 DOW 30 stocks reporting, including AAPL, BA, DIS, XOM, MRK, and PFE. 24% of the S&P 500 will report, including MMM, CVX, AMZN, and MA,
Next Week’s U.S. Economic Reports: Some of the economic reports due out next week may be delayed, due to the government shutdown. The Fed Open Market Committee holds its 1st meeting of 2019, on Tuesday and Wednesday – no rate hike is expected when the Fed makes its announcement on Wed. The January Nonfarm Payrolls Report and the Unemployment rate should come out on Friday.
Sectors: Real Estate led the pack this week, with Energy, Consumer Staples and Healthcare trailing.
Futures:
WTI Crude fell .91% this week, finishing the week at $53.55, while Natural Gas fell -12.35%.
