Stock Market News: Small Caps Took The Biggest Hit Friday
Double Dividend Stocks | May 19, 2019 03:52AM ET
Markets:
“Wall Street ended lower on Friday as continuing trade tensions pulled industrial and tech shares down, and the Dow capped a fourth straight week of losses in its longest weekly losing streak in three years.” (Reuters)
Small caps took the biggest hit, followed by the NASDAQ, S&P and the DOW.
“On Monday, Chinese officials announced retaliatory tariffs against the U.S., hitting $60 billion in annual exports to China with new or expanded duties that could reach 25%. Hu Xijin, editor in chief of China’s Global Times, a daily Chinese tabloid with ties to the Communist Party, reported on Twitter Monday morning that China may take further steps in the coming days and weeks."
High Dividend Stocks:
These high yield stocks go ex-dividend next week - ECT, COHN, AEG, SUNS, BGCP, PBA.
Market Breadth:
14 out of 30 DOW stocks rose this week, vs. 4 last week. 38% of the S&P 500 rose, vs. 24% last week.
Volatility:
The VIX was flat this week, ending the week at $15.96, down -.04%.
FOREX:
The USD rose vs. most major currencies once this week, except the Swiss franc.
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Read market moving news with a personalized feed of stocks you care about.Get The AppEconomic News:
“Consumer and industrial activity in both the U.S. and China slowed in April, even before the world’s two biggest economies entered the latest phase of an escalating trade war that could take a bite out of global growth. China’s retail sales grew 7.2% in April, the slowest pace in 16 years, and less than March’s 8.7% and forecasts of 8.6%. China’s April industrial production rose 5.4%, less than the 6.5% expected or the 8.5% gain in March.
U.S. retail sales slid 0.2% in April, down from the surprise jump of 1.7% gain in March. Car sales fell 1.1% last month, while sales at electronics and appliance stores lost 1.3%. Economists had expected a 0.2% gain in the monthly sales data, which is important since it reflects the health of the consumer, about 70% of the U.S. economy.
U.S. industrial production, reflecting total production at factories, utilities and mines, fell 0.5% after a 0.2% gain in March. Manufacturing output dropped 0.5%, led by a 2.6% decline in motor vehicles and parts, the third decrease in four months and the latest manufacturing report to show softness.” (CNBC)
“In 2014, China supplanted Canada as home to the largest share of foreign buyers of U.S. residential real estate, according to the NAR. In 2018 dollars, Chinese buyers accounted for roughly 25% of total foreign investment in U.S. residential real estate. Canada was No. 2 at 9%.
Of the 284,000 properties sold to foreign buyers last year, some 40,400, or 15%, were bought by Chinese nationals. Five years earlier, Chinese nationals had only purchased 23,075 homes, representing only 12% of all properties sold to foreign buyers then. That’s still a small percentage of investment in U.S. residential real estate. As of 2018, foreign buyers accounted for just 3% of U.S. home sales, the association added. That figure had been rising, but experienced a modest decline between 2017 and 2018. The figures for 2019 are expected to remain similar to the 2018 levels.
Nearly 40% of Chinese buyers have purchased in California, thanks in part to the state’s large Asian community. Chinese nationals represent a significant share of the foreign buyers of residential real estate in the New York City metropolitan area and growing share of the buyers in states like Florida and Texas.” (Marketwatch)
The concern is that the trade war could lead China’s government to place restrictions on moving money out of the country.
Week Ahead Highlights:
A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member states’ commitment to their deal to reduce oil production and could make a recommendation on whether to extend or adjust the pact. The minutes from the Fed’s previous meeting will also be released next week.
Sectors:
Utilities and Real Estate led this week, with Financials lagging.
Futures:
WTI Crude gained 1.96% this week, finishing the week at $62.87, while Natural Gas rose .15%.
“Oil production capacity could fall to under one percent of global oil demand by the end of the year if OPEC compensates falling production from Iran and Venezuela, leaving oil prices exposed to sharp swings in the event of unplanned outages, analysts say. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage. Very few oil producers hold spare capacity, with Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, and the world’s biggest oil exporter, holding the lion’s share.” (Reuters)
“Saudi Energy Minister Khalid Al-Falih said that two tankers, one of which was to be loaded with Saudi crude oil bound for the US, “were subjected to a sabotage attack” off the coast of the United Arab Emirates while transiting the gulf, according to a statement from the Saudi Press Agency. The attack didn’t result in any casualties or oil spillage but damaged the structure of the two vessels.” (US News & World Report)
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