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Markets: 3 out of 4 indexes pulled back this week, with only the DOW barely eking out a .10% gain. Even an OPEC production cut agreement couldn’t lift the market, although it did lift the Energy sector by nearly 3%.
The Municipal Bond Index fell over 3.46% in November, (its worst drop since the Sept. ’08 fall of Lehman Brothers), due to the prospect of lower tax rates in 2017, stemming from an overhaul of US tax system.
The market also gave a big yawn to Friday’s Payrolls Report, even though the Unemployment Rate unexpectedly dropped to 4.6%, its lowest since August 2007, before the Recession.
Q3 Corporate profits rose 5.2%, by far the best outing in several quarters, another sign of a strengthening US economy.
High Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Alon USA Energy Inc (NYSE:ALJ), Easterly Government Properties (NYSE:DEA), Greenhill & Co Inc (NYSE:GHL), Softmatic AG (F:SFPGk), Medical Properties Trust Inc (NYSE:MPW), New Senior Investment Group (NYSE:SNR), Garrison Capital Inc (NASDAQ:GARS), Outfront Media Inc (NYSE:OUT), Golub Capital BDC Inc (NASDAQ:GBDC).
Volatility: The VIX rose 14.4% this week, finishing at $14.12.
Currency: The $ rose strongly vs. most major currencies over the past month, excepting the British Pound.
Market Breadth: 7 of the Dow Jones 30 stocks rose this week, vs. 23 last week. 34% of the S&P 500 rose this week, vs. 76% last week.
US Economic News: The Unemployment Rate fell unexpectedly to 4.6%. NonFarm Payrolls were in line with forecasts, at 178K. This was the 74th consecutive month of job gains. In November, employment gains occurred in professional and business services, and in health care. Q3 GDP was raised to 3.2% from 2.9%. Personal Incomes rose .6%, but Personal Spending rose less than forecast, only .3%.
2014 and 2015 had the biggest US job growth gains since the late 90’s, with most of the gains coming in the service sector vs. manufacturing, which formerly supplied a lot more jobs. Service industry jobs now account for 80% of all US jobs, as workers who have attained sought after skills in Tech, Finance, and other service-related sectors industries, are in demand.
Sectors & Futures: The Energy sector led this week, thanks to an OPEC production cut agreement, while Tech trailed.
natural gas, copper, crude oil, and other basic materials have had big gains over the past trading month, while gold and silver futures have trailed:
