VIX Falls, Core CPI Has Biggest Gain In Over 4 Years
Double Dividend Stocks | Feb 21, 2016 02:37AM ET
Markets: The crude oil correlation continued in this short week, with all 4 indexes registering good gains, as crude oil futures gained 8.56% on the week. Investors moved back into more risk, and pushed the RUSSELL Small Caps up nearly 4%. This was the market’s best week thus far in 2016.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: N:ALJ, N:DBD, O:RMCF, N:AYR, N:BEP, N:BIP, N:BPY, N:CLDT, N:EXC, N:STAG, O:STB, N:EFC, N:HHS, O:ONB
Volatility: The VIX fell 17.6% this week, finishing at $20.53.
Currency: The US dollar rose vs. the pound, the euro, and the Swiss franc, and fell vs. most other major currencies.
Market Breadth: 28 of the DOW 30 stocks rose this week, vs. 11 last week. 96% of the S&P 500 rose this week, vs. 35% last week.
US Economic News: Core CPI rose .3%, its biggest gain in over 4 years. Unemployment Claims hit a 3-month low this week.
Industrial Production surprised to the upside, led by strong vehicle sales. NY State Mfg. had its 7th straight month of contraction.
Week Ahead Highlights: Friday’s surprisingly high CPI number has shifted investors’ perception of the probability of a possible FED rate hike by year end, up to 40%, from only 25% last week. With the Fed’s dual mandate of 2% inflation and 5% unemployment, and unexpected rise in CPI figures seems to shift rate hike possibilities higher. There will be several FED members giving speeches next week, which may add fuel to this shift.
Get The News You Want
Sectors and Futures:
Consumer Discretionary Stocks led this week, as Utilities trailed.
West Texas Crude Oil led this week, spurred on by reports of some OPEC and non-OPEC members reaching an agreement on freezing output, IF other members also agreed. However, crude faded on Thursday and Friday, after higher than expected US crude supplies were reported. Natural Gas trailed:
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.