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IN-THE-MARKETS

In the Markets: Week-Ending February 12

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending February 12
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: Small business optimism declined more than expected in January, falling 1.3 points to 93.9 . The index is now at its lowest level since February 2014.(1)

Europe: Real GDP growth in the Eurozone remained modest in Q4, rising only 0.3 percent.(2) Deutsche Bank AG plans to buy back about $5.4 billion of bonds in euros and dollars as it seeks to allay investor concerns about its finances. European equities have been among the most hurt during the rout that erased about $8.6 trillion from stocks worldwide this year alone.

Asia: India’s consumer prices rising 5.69%, faster than expectations.(3) Japanese shares were hammered Friday, capping their worst week since the 2008 global financial crisis.(4)

Monday 02/08

• Indian real GDP growth slowed a bit in Q4 2015 but remained robust at 7.3 percent.(5)
• China’s foreign-exchange reserves decline to $3.23 trillion, the smallest since 2012.(6)

Tuesday 02/09

• National Association of Home Builders Index decreased by 3 points to 62 in November.(7)
• Job openings rebounded in December to 5.6 million, bringing the opening rate back to a series high of 3.8 percent.(8)

Wednesday 02/10

• Benchmarks ended a choppy session in the red following another sharp fall in oil prices, which had a negative impact on energy stocks .(9)
• The federal government ran a surplus of $55.2 billion in January .(10)

Thursday 02/11

• Oil futures settled below $28 a barrel, their lowest level in three weeks.
• U.S. stocks fell, with Dow Jones Industrial Average tumbling more than 250 points.(11).

Friday 02/12

• Weak demand abroad, the dollar’s strength and falling commodity prices continued to drag import prices lower in January.(12)
• Retail sales rose a better-than-expected 0.2 percent in January, while the originally reported 0.1 percent drop in December was upgraded to a 0.2 percent increase.(13)
• Nikkei in worst weekly drop since 2008, Japan’s Nikkei share average stumbled to a fresh 16-month low in heavy trade.(14)
• Gold prices slipped, with the safe-haven metal out of favor as so-called risk assets rallied.(15)

 

 

Market Close
U.S. stocks ended Friday’s session sharply higher, led by big gains in the financials and oil. Oil futures surged 12%, their biggest one-day gain in seven years. Meanwhile, a rally in JPMorgan Chase & Co. JPM, +8.33% and Goldman Sachs Group, Inc. GS, +3.87% shares led gains on the Dow Jones Industrial Average. However, the main indexes, booked their second consecutive weekly declines due to losses earlier in the week. The S&P 500SPX, +1.95% gained 35.69 points, or 2%, to 1,864.77 but ended the week 0.8% lower. The Dow Jones Industrial Average DJIA, +2.00% jumped 313.66 points, or 2%, to 15,973.84, but booked a 1.4% weekly loss. Meanwhile, the NASDAQ Composite COMP, +1.66% rose 70.67 points, or 1.7%, to 4,337.51 and ended the week 0.6% lower.(16)

Contributor: Felipe Vargas-Zúñiga

Sources:
(1) Source: NFIB and Wells Fargo Securities, LLC
(2) Source: IHS Global Insight and Wells Fargo Securities, LLC
(3) Source: Bloomberg
(4) Source: TheWallStreetJournal
(5) Source: CEIC, IHS Global Insight and Wells Fargo Securities, LLC
(6) Source: Bloomberg
(7) Source: National Association of Home Builders
(8) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(9) Source: Zacks Equity Research
(10) Source: U.S. Department of the Treasury and Wells Fargo Securities, LLC
(11) Source: Bloomberg
(12) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(13) Source: U.S. Department of Commerce and Wells Fargo Securities, LLC
(14) Source: Reuters
(15) Source: MarketWatch
(16) Source: MarketWatch