In the Markets: Week-Ending January 22
Newsletter: In the Markets – Week-Ending January 22
Crystal Brook Advisors
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United States: U.S. stocks were on track for their first weekly gain of the New Year Friday as oil futures surged and investors were encouraged by hints of potential central-bank stimulus in Europe and Japan after a tough week for global markets.(1)
Europe: European Central Bank President Mario Draghi floated the prospect of more economic stimulus as early as March. Investors cheered the comments, sending the Stoxx Europe 600 Index to its biggest two-day surge since 2011.(2)
Asia: China will probably have to devalue its currency to address slowing growth in the world’s second-largest economy. Japanese stocks jumped on Friday in part amid hopes of expanded stimulus.(3)
Monday 01/18
• Market closed.
Tuesday 01/19
• U.S. stocks finished mostly higher on Tuesday, as the S&P 500 and Dow industrials managed to hold on to minor gains amid a renewed rout in oil prices that took the wind out of an early rally.
• After a downward revision to December’s reading, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) remained unchanged in January, recording a level of 60.(4)
Wednesday 01/20
• Architecture billings rose 1.6 points in December to a score of 50.9, following a negative reading in November. Commercial/industrial billings fell into contractionary territory, while institutional remain positive.(5)
• Dow Drops 500 Points as International Stocks Hit Bear Market.(6)
Thursday 01/21
• Shares of Boeing Co. fell in Thursday’s extended session after the aircraft maker said it would cut back production on 747s to 0.5 plane per month by September from one currently.(7)
• U.S. stocks finish higher Thursday, as a sharp rally in oil prices helped the main indexes rebound from Wednesday’s rout, which had pushed them below their August lows. (8)
Friday 01/22
• Information that differs from expectations drives price volatility. Credit markets are coming to terms with the changing economic fundamentals in an aging economic expansion. (9)
• The CPI fell 0.1 percent in December as a decline in food and energy more than offset further gains in core inflation. Although energy will continue to weigh on the index in the near term, the drag is diminishing.(10)
• Oil rallies above $30, set for its first weekly gain in a month.(11)
Market Close
U.S. stocks ended sharply higher Friday, scoring first weekly gain of the new year, as oil futures surged and investors were encouraged by hints of potential central-bank stimulus in Europe and Japan after a tough week for global markets. The S&P 500 SPX, +2.03% closed up 38 points, or 2%, at 1,906, with all 10 of its main sectors in positive territory, led by energy and tech. The Dow Jones Industrial Average DJIA, +1.33% closed 211 points higher, or 1.3%, at 16,093. The Nasdaq Composite COMP, +2.66% closed up 119 points, or 2.7%, at 4,591. The indexes were still on track for heavy monthly losses, down between 7% and 9% since the beginning of the year.(12)
Contributor: Felipe Vargas-Zúñiga
Sources:
(1) Source: Marketwatch
(2) Source: Bloomberg
(3) Source: Bloomberg
(4) Source: National Association of Homebuilders and Wells Fargo Securities, LLC
(5) Source: The American Institute of Architects, U.S. Department of Commerce and Wells Fargo Securities, LLC
(6) Source: US News
(7) Source: MarketWatch
(8) Source: MarketWatch
(9) Source: U.S. Department of Commerce, Federal Reserve Board and Wells Fargo Securities, LLC
(10) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(11) Source:MarketWatch
(12) Source:MarketWatch
