Markets: The market rose again this week, with all 4 indexes making big gains. Indexes were propelled into positive territory via Friday’s big rally, which saw 1.4% to 1.8% gains for all 4 indexes, as investor worries about rising interest rates were shrugged off.
The Nasdaq Composite Index rallied on Friday, capping a curious week for the technology laden index that places it a mere 2.2% from its all-time high set on Jan. 26. The Nasdaq Composite ended the session up 127 points, or 1.8% at 7,337, putting it 168 points or 2.2% shy of its record at 7,505.77. That represents a roughly 8.3% gain over 10 trading sessions for the benchmark, which is viewed as a proxy for risk appetite on Wall Street, since it tumbled into correction territory on Feb. 8, along with the Dow Jones Industrial Average and the S&P 500 index. A correction is typically defined as a drop of at least 10% from a recent drop. The Dow and S&P 500 also were recovering sharply, but the Nasdaq has been outperforming both of its peers, even after marking a four-day losing stretch on Thursday–its longest skid since Nov. 4, 2016. (marketwatch.com)
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: AGNC, BGCP, CLDT, CRT, EPR, GECC, HGT, LBY, PBFX, PSEC, SCM.
Volatility: The VIX fell 15.3% this week, ending at $16.49, in the 2nd week of declines.
Currency: The USD rose vs. most major currencies this week.
Market Breadth: In a middling week for market breadth, 19 of the DOW 30 stocks rose this week, vs. 28 last week. 69% of the S&P 500 rose, vs. 7% last week.
Economic News: “Federal Reserve Bank of San Francisco President John Williams said he favors three or four interest-rate increases this year and policy makers should make a move soon. It makes sense to think about three or four rate increases in 2018," Williams told reporters following a speech Friday in Los Angeles. When asked if he'd want to move at the Feds next meeting, on March 20-21, he declined to comment directly but said that we should be moving ahead with a rate increase relatively soon, in the near future. Investors have essentially fully priced in a rate hike at the Feds March meeting. (Source: Bloomberg)
“Warren Buffett, the 87-year-old chairman of Berkshire Hathaway (NYSE:BRKa) Inc., is retiring from Kraft Heinz Co.’s board following the end of his term in April," according to the food company Friday. “Mr. Buffett decided to retire from the board as he decreases his travel commitments,” said Kraft Heinz in a statement. The company’s board plans to nominate Alexandre Van Damme to stand for election at the 2018 Annual Meeting on April 23 to replace Buffett. Shares of Kraft Heinz fell 1.5% after hours.
Week Ahead Highlights: New Fed chief Jerome Powell delivers his first testimony to Congress as Fed chairman on Feb. 27.
Next Week’s US Economic Reports: It’ll be a big week for financial date, with Q4 GDP due out, in addition to several Housing-related reports. Consumer Sentiment and Spending reports will also be issued.
Sectors: Tech and Basic Materials were unlikely bedfellows this week, as they led all other sectors, whereas defensive Consumer Staples lagged.
Futures: Crude Oil WTI Futures rose 3.28%, and Natural Gas futures rose 4.38% this week.
“The flood of U.S. oil exports stepped up a gear on Monday after the first fully laden supertanker sailed from an American port, alleviating a bottleneck that's limited overseas shipments.
The Louisiana Offshore Oil Port, or LOOP, the only deep water port in the U.S. able to handle the industry's biggest tankers, said it had successfully completed the first loading of a very large crude carrier. Shipping data compiled by Bloomberg show the tanker is the Saudi Arabian-owned Shaden, now heading to the Chinese port of Rizhao.
“There could not be a better time to offer this service as domestic production surpasses 10 million barrels per day in the ever-dynamic global crude oil market,” said LOOP President Tom Shaw.
The Shaden, which is owned by the National Shipping Co. of Saudi Arabia and carries the flag of the kingdom, was the first VLCC to load oil at the port rather than discharge it.
Pipelines and ports have become the biggest bottleneck in U.S. oil exports, with traders at times creating logistically complex chains, combining railways, trucks, pipelines, barges, and ship-to-ship transfers to get crude out of the country. As U.S. output surpasses the record high of 10 million barrels a day set in 1970, trading houses, pipeline owners and ports are investing in new infrastructure to ship more American crude overseas. Even though the country remains a net oil importer, U.S. crude exports have surged to a record high of 2.1 million barrels since the ban was lifted. China and other Asian nations have become big buyers.
