Markets: It was a mixed week for the market, with 3 out of 4 indexes gaining, but the Tech-heavy NASDAQ losing ground. However, all 4 indexes hit new all-time highs, spurred on by Tax cut hopes and OPEC support. Oil prices were helped by OPEC, which announced on Thursday that it has agreed, along with its non-member allies, to extend its oil production-cut agreement to the end of 2018. The agreement lengthens the cuts by another nine months.
NOVEMBER was a strong month, with the DOW mega caps, and the Russell Small Caps leading:
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Gladstone Investment Corporation (NASDAQ:GAIN), Whitestone REIT (NYSE:WSR), Triangle Capital Corporation (NYSE:TCAP), Medical Properties Trust Inc (NYSE:MPW), Ferrellgas Partners LP (NYSE:FGP), Garrison Capital Inc (NASDAQ:GARS), New Senior Investment Group (NYSE:SNR), Cato Corporation (NYSE:CATO), Ship Finance International Ltd (NYSE:SFL).
Volatility: The VIX surged on mid-day Friday, after news surrounding the Flynn FBI case was announced, but then it subsided a bit, ending at $11.43, up 18.45% this week.
Currency: The $ fell vs. the Pound, the Euro, Swiss Franc, and the Yen, in November, but rallied vs. the Loonie, and the NZ & Aussie dollars.
Market Breadth: 25 of the DOW 30 stocks rose this week, vs. 19 last week. 75% of the S&P 500 rose, vs. 73% last week.
Economic News: Revised Q3 GDP was 3.3%, matching forecasts. The solid growth data was underpinned by the boost in capital investment spending, rising 10.4% instead of 8.6%. Analysts suggest such strong growth numbers could solidify the chance of the Federal Reserve approving a December rate increase, which is nonetheless widely expected. (Source: MarketWatch)
“17 million more Americans are employed now than eight years ago,” outgoing Fed chief Janet Yellen, who became a top Fed official in 2010, said in prepared remarks this week. Yellen is likely to be remembered for leading the Fed to successfully raise interest rates, starting in late 2015, after years of unprecedented support for the economy. The Fed slashed rates to 0% in 2008 in an effort to boost the collapsed housing market and economy. Unemployment for blacks and Hispanics — both suffered significantly higher jobless than whites during the Great Recession — has also fallen below where it was before the crisis. Unemployment for blacks, Hispanics and whites is 7.5%, 4.8% and 3.5% respectively.
Wall Street investors widely expect the Fed to raise rates in December, and Yellen noted that “gradual increases” in rates will be appropriate. Powell, her successor, maintained the same tone during his confirmation hearing on Tuesday. His monetary policy is expected to be similar to Yellens.
Week Ahead Highlights: The market will be focused on the Flynn story, and ongoing developments with the Tax Bill.
Next Week’s US Economic Reports: The NonFarm Payrolls report and Unemployment Rate for November are both due out next Friday. The ADP employment report is due out on Wed.
Sectors: The Telecom and Tech sectors led this week, with Utilities trailing.
Futures: WTI Crude futures rose 7.35% in November, and Natural gas rose 5.74%%.
