In the Markets – Week-Ending May 13
Newsletter: In the Markets – Week-Ending May 13
Crystal Brook Advisors
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United States: Small business optimism increased in line with expectations in April.(1) The number of Americans who applied for unemployment benefits in early May rose for the third straight week and hit a 14-month high.(2)
Europe: Volkswagen AG’s European market share narrowed for an eighth consecutive month since the German carmaker’s admission to rigging diesel cars to cheat on emissions tests. Asia, Western Australia, the largest iron-ore producing state, lifted its price forecast 12 percent after steel demand rose in China.
Asia: Iran’s success in boosting crude output to the most since late 2011.(3)
Monday 05/09
• Oil futures slumped, undercut by uncertainty following the replacement of longtime Saudi Arabian oil minister Ali al-Naimi.(4)
• The ouster of LendingClub Corp.’s chief executive after a board review uncovered improper activity in the company’s lending process highlights the risk of a rapidly growing business and will likely draw further regulatory scrutiny of the peer-to-peer lending business.(5)
Tuesday 05/10
• February’s decline in job openings was revised away to show a flat reading followed by an increase in March. Hiring receded slightly, although separations also fell due to declining layoffs.(6)
• Staples’ $6.3 billion acquisition of its largest rival ended unsuccessfully, after a judge agreed to the Federal Trade Commission’s request for a preliminary injunction on antitrust grounds.(7)
Wednesday 05/11
• Credit quality has a distinct cycle as both the availability and pricing of credit reflects the changing fundamentals of the markets.(8)
• Oil futures soared past $46 a barrel to settle at their highest level in more than six months.(9)
• Google, the search engine company of Alphabet Inc , announced its intention on Wednesday to ban ads from payday lenders .(10)
Thursday 05/12
• Matching an upwardly revised March performance, import prices increased 0.3 percent in April.(11)
• Apple Inc.’s stock tumbled 3.1% to a near two-year low in morning trade, as a sharp drop in earnings at Taiwanese iPhone assembler Foxconn Technology Co. highlighted increasing concerns over slowing iPhone sales.(12)
Friday 05/12
Market Close
U.S. stocks sold off on Friday despite stronger-than-expected retail sales data. The S&P 500 and Dow industrials posted their third consecutive weekly declines. The S&P 500 SPX, -0.85% closed down 17.62 points, or 0.9%, to 2,046.49 and booked a 0.5% weekly loss. The Dow Jones Industrial Average DJIA, -1.05% dropped 185.18 points, or 1.1%, to 17,535.32 and ended the week 1.2% lower. Meanwhile, the Nasdaq Composite COMP, -0.41% ended the session down 19.66 points, or 0.4%, at 4,717.68 and recorded a 0.4% weekly drop, its fourth in a row.(13)
Contributor: Felipe Vargas-Zúñiga
Sources:
(1) Source: National Federation of Independent Business and Wells Fargo Securities, LLC
(2) Source: MarketWatch
(3) Source: Bloomberg
(4) Source: MarketWatch
(5) Source: MarketWatch
(6) Source: U.S. Department of Labor and Wells Fargo Securities, LLC
(7) Source: MarketWatch
(8) Source: Federal Reserve Board, FactSet, Federal Reserve Bank of New York and Wells Fargo Securities, LLC
(9) Source: MarketWatch
(10) Source: MarketWatch
(11) Source: U.S. Department of Labor, Federal Reserve and Wells Fargo Securities, LLC
(12) Source: MarketWatch
(13) Source: MarketWatch
