How is your portfolio handling the up and down market of 2018?
Markets: The Dow and S&P 500 bounced back this past week, with the Dow leading all 4 indexes, while the NASDAQ was off slightly, and the Russell gained.
“Turkey doubled tariffs on some U.S. imports including alcohol, cars and tobacco on Wednesday in retaliation for U.S. moves. The Turkish lira The currency has lost nearly 40 percent against the dollar this year, driven by worries over President Tayyip Erdogan’s growing influence on the economy and his repeated calls for lower interest rates despite high inflation.” (Reuters)
Second-quarter earnings have been stronger than expected, with 79 percent of the 460 S&P 500 that have reported so far beating analyst expectations, according to Thomson Reuters.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: ECA Marcellus Trust I (NYSE:ECT), Sanchez Midstream Partners LP (NYSE:SNMP), Nielsen Holdings (NYSE:NLSN), Pitney Bowes Inc (NYSE:PBI).
Volatility: The VIX rose 8.6% this week, ending the week at 12.64.
Currency: The USD fell vs. most major currencies this week, but rose slightly vs. the Swiss franc and the British pound.
Market Breadth: 22 of the Dow 30 stocks rose this week, vs. 16 last week. 67% of the S&P 500 rose this week, vs. 56% last week.
Economic News:
“Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5% last month after a downwardly revised 0.1 percent dip in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.” (Reuters)“Refineries processed a record-high 18 million barrels of crude per day in early July. Full-year refinery activity is forecasted to hit a record in 2018 for the second year in a row. The flurry of refinery activity reflects a big increase in driving this summer, as the US and global economy strengthens.
The amount of motor gasoline delivered in the United States is expected to match the record-high of the last two summers, according to the US Energy Information Administration. A near-record 9.7 million barrels per day of motor gasoline was delivered in early August. The US Gulf Coast, the epicenter of America’s refineries, reached a new record in early July by processing 9.5 million barrels per day.”
Week Ahead Highlights: It’ll be a very light week for economic data, but there will be the Fed meeting minutes from the last FOMC meeting, which may give some additional color to future rate hike timing.
Next Week’s US Economic Reports:
Sectors: The market turned defensive this week, with Consumer Staples leading and Energy trailing.
Futures:
WTI Crudefinished the week at $65.20, with WTI down -3.59%. NatGas futures were flat.
