How is your portfolio handling the up and down market of 2018?
Markets: It was a mixed week – with all 4 indexes saved from weekly losses by Friday’s big rally, powered by positive news about Warren Buffet’s bigger stake in Apple (NASDAQ:AAPL). The DOW and the S&P 500 finished the week slightly down, while the NASDAQ led all 4 indexes, followed by the Russell 2000.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Crestwood Equity Partners LP (NYSE:CEQP), Global Net Lease Inc (NYSE:GNL), Martin Midstream Partners LP (NASDAQ:MMLP), Huaneng Power International Inc (NYSE:HNP), Corporate Capital Trust Inc (NYSE:CCT),
Volatility: The VIX fell -4.5% this week, ending the week at $14.77.
Currency: The USD rose vs. most major currencies once again this week, even though the Fed didn’t raise rates this week. The Fed’s 2018 projected program of 3-4 raises stands alone among the large central banks, which is attracting more buyers for the dollar.
Market Breadth: 10 of the DOW 30 stocks rose this week, vs. 15 last week. 38% of the S&P 500 rose this week, vs. 57% last week.
Economic News: “”US jobs growth was slower than expected in April, as employers added 164,000 positions. That was still the fewest amount of jobs created in six months and followed an outsized gain of 324,000 in February.
The yearly rate of pay increases was unchanged at 2.6% for the third month in a row. Employment gains for March and April were revised up by a combined 30,000, the Labor Department said Friday.
The unemployment rate nevertheless fell to 3.9%, the first time it has dipped below 4% since 2000. The average hourly pay of private sector workers increased 2.6% year-on-year to $26.84.
Manufacturers and the professional and business services sector helped to drive April’s job gains.The US has added an average of roughly 190,000 jobs per month over the past year. (BBC)
“The Federal Reserve held short-term interest rates steady Wednesday and indicated it remains on track to raise them gradually in coming months to keep the expanding economy on an even keel.
In its announcement, the U.S. central bank expressed a confident economic outlook, saying that activity had expanded at a moderate rate and that inflation was nearing its 2-percent target. The Fed unanimously decided to keep its lending rate in a target range of between 1.50 percent and 1.75 percent. It is expected to increase rates in June.”
Week Ahead Highlights: Q1 ’18 earnings season begins to slow down, with only 1 DOW component, Walt Disney Company (NYSE:DIS) reporting. 8% of the S&P 500 will report next week.
Next Week’s US Economic Reports: It’ll be a slow week for data, but Wednesday and Thursday will feature some inflation reports- the PPI and the CPI.
Sectors: The Tech sector led this week, as Healthcare and Telecoms trailed.
Futures:
Crude Oil WTI Futures rose again this week, up 2.48%, while Natural Gas futures fell -2.17%.
