Markets Closed Higher On Trade Optimism And Increased Crude Prices
Double Dividend Stocks | Feb 23, 2019 06:04PM ET
Markets: It was another up week for the market, as the S&P 500 posted its highest closing level since Nov. 8th. It was a risk on again, as the Russell small caps outpaced the other indexes. Investor sentiment was fueled by positive comments about the ongoing trade talks between the U.S. and China and by higher crude oil prices.
High Dividend Stocks: These high yield stocks go ex-dividend next week – BIP, BEP, BOR, BPY, CLDT, CLNC, CRT, ORC, PBT, SJT, CSS, CWEN, EFC, PEI, SPKE, WY, WSR.
Volatility: The VIX fell -9.3% this week, ending at $13.51.
FOREX: It was a reversal week for the greenback – the USD rose versus the NZD, the AUD, and the JPY, but fell versus the EUR, the GBP, CHF, and the CAD.
Market Breadth:29 DOW 30 stocks fell this week, vs. 29 rising last week. 82% of the S&P 500 rose this week, versus 87% rising last week.
Economic News:
Durable goods orders rose 1.2% in January, less than the 1.4% forecasted by economists.
“The Conference Board’s leading economic index fell for the second straight month in January, marking the index’s first back-to-back pullback since early 2016. IHS Markit also said its U.S. manufacturing purchasing managers’ index fell to 53.7 in February, a 17-month low, from 54.9 last month. IHS Markit said in a release that survey respondents cited “a soft patch for client demand, partly linked to uncertainty across manufacturing supply chains and concerns about the global trade outlook.” (CNBC)
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Read market moving news with a personalized feed of stocks you care about.Get The App“Chinese trade negotiators have yet to provide clarity on how Beijing will address Washington’s demands for more protection of American intellectual property, a key issue in negotiations to end a trade dispute between the two countries, a USDA official said on Friday.” (REUTERS)
“The European Union is drafting a list of retaliatory tariffs that would target Caterpillar Inc (NYSE:CAT), Xerox Corp (NYSE:XRX) and Samsonite International if the U.S.imposes duties on European cars, Bloomberg News reported on Friday, citing an unnamed senior EU official.” (Reuters)
Week Ahead Highlights: U.S. Non-Farm Payrolls would normally be reported next Friday, but may be delayed, due to the government shutdown. We’ll get a lot of Housing data next week.
Next Week’s US Economic Reports:
Sectors: Utilities and Basic Materials stocks led the pack this week, with Energy and Healthcare trailing. Industrials, Energy, and Tech are the leading sectors year to date.
Futures:
WTI Crude rose 1.95% this week, finishing the week at $57.07, while Natural Gas rose 4.05%.
Oil fell on Wednesday after the U.S. government said shale output would rise to a record next month, denting a rally that sent prices to their highest this year. The U.S. Energy Information Administration said in a monthly report on Tuesday shale production alone will hit a record 8.4 million barrels per day next month, suggesting little chance of a near-term slowdown in overall U.S. crude output.
The oil price has risen by more than 20 percent so far this year, supported largely by an agreed 1.2 million bpd production cut by the Organization of the Petroleum Exporting Countries and several other major exporters such as Russia.
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