Markets: All 4 indexes had huge gains this week, following the surprise results from the US election. Investors poured into small caps, sending the Russell 2000 up 10%. The Dow ended at an all-time high, in its best week since 2011, and the S&P 500 had its best week since October 2014.
Financials rallied, on stronger certainty of future Fed rate hikes. The Bond market was closed in the US on Friday, but bond yields rose to their highest level since January.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: (NYSE:APAM), (NASDAQ:CLCT), (NASDAQ:GAIN), (NASDAQ:GLAD), (NASDAQ:GOOD), (NASDAQ:HRZN), (NYSE:NRT), (NASDAQ:CPTA), (NYSE:MAIN).
Volatility: The VIX flipped backward, falling 37% this week, finishing at $14.17, after rising 39% last week.
Currency: The dollar rose vs. most other major currencies, except the British pound, with a December Fed rate hike more certain after the election results.
Market Breadth: 26 of the Dow 30 stocks rose this week, vs. 2 last week. 75% of the S&P 500 rose this week, vs. 26% last week.
US Economic News: Consumer Sentiment rose to 91.6, higher than the 87.9 forecast.
Week Ahead Highlights: It’ll be a heavy data week, with several housing reports coming out. In addition, a key inflation report, CPI, comes out, hopefully giving us more clarity on future rate hikes.
Next Week’s US Economic Reports:
Sectors and Futures: Financials had a huge week, thanks to the increased chances of a December Fed rate hike, and the possibility of less regulation. Industrials also surged, due to a projected increase in government infrastructure spending in 2017. Conversely, Utilities trailed, due to the increased probability of higher rates coming from the Fed in December.
Copper led, while gold futures had their worst 1-week drop in 3 years:
