A Down Week In The Market As Investors Cautiously Take Some Profits
Double Dividend Stocks | Aug 28, 2016 03:10AM ET
Does Your Portfolio Need More Protection In This Volatile Market?
Check out our returns in 2016:
Markets: The market had a down week, as investors cautiously took some profits. Only the Russell small caps managed to eke out a tiny gain. The S&P 500 fell for the 5th time in the last 6 sessions, but is still just 1% below its all-time high.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: American Capital Agency Corp (NASDAQ:AGNC), Chatham Lodging Trust REIT (NYSE:CLDT), Exelon Corp (NYSE:EXC) Unit (NYSE:EXCU), IRT, NDRO, PSEC, STB, TPVG, Wheeler RE Investment Trust (NASDAQ:WHLR), EFC, RELM Wireless Corporation (NYSE:RWC), WSR, Apple (NASDAQ:AAPL) Hospitality REIT Inc (NYSE:APLE), GBDC, Kronos Worldwide Inc (NYSE:KRO), GHL.
Volatility: The VIX rose 3% this week, finishing at $15.15.
Currency: The US Dollar Index rose vs. most currencies, except the Pound, as Yellen’s speech fanned rate hike fears.
Market Breadth: 7 of the DOW 30 stocks rose this week, vs. 18 last week. 36% of the S&P 500 rose this week, vs. 55% last week.
US Economic News: Fed chief Yellen paved the way for future rate hikes in her Jackson Hole speech Friday:
“I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said in a speech at the Fed’s annual monetary policy conference in Jackson Hole, Wyoming.
Get The News You Want
Yellen said the Fed already thinks it is close to meeting its goals of maximum employment and stable prices, and she described consumer spending as “solid” while noting business investment was weak and exports had been hurt by a strong U.S. dollar. New Home Sales hit their highest mark since 2007, up 12% to 654K, while Existing Home Sales underwhelmed. GDP rose 1.1% i Q2, but consumer spending outpaced, rising 4.4%.
Week Ahead Highlights: Next Friday’s NonFarm Payrolls report now looms very large, after Fed chief Yellen’s more hawkish Jackson Hole speech. The market expects a 180K jobs number for August. We may return to the “good news is bad news” syndrome we had in 2015, in which strong payroll reports prompted selloffs, due to rate hike fears. Keep an eye on Wednesday’s ADP Employment Change report, which often predicts how the Non-Farm Payroll report will go.
Sectors & Futures:
The Financial sector led this week, reacting to rate hike speeches from Fed members, while rate-sensitive Utilities lagged.
Natural Gas led this week, while wheat lagged:
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.