The S&P 500 rose 2.1% this week, but had to weather a late week sell-off after the latest policy statement from the Federal Reserve humbled an upbeat reaction to the midterm elections. Neither outcome was a surprise, but they were representative of recent market volatility. The Dow Jones Industrial Average and the Nasdaq Composite also finished the week higher, adding 2.8% and 0.7%, respectively. The Russell 2000 added 0.1%.
In the stock market, the health care (+4.0%), real estate (+3.6%), and utility (+3.1%) groups led the way. Of note, health care has surpassed the information technology (+1.4%) and consumer discretionary (+2.0%) sectors for the top spot in the yearly sector standings with a 2018 gain of 12.4%. For comparison, tech is up 10.7%, and consumer discretionary is up 10.9%. Conversely, the communication services sector was the only group to finish in negative territory with a weekly loss of 0.2%.
In earnings, some notable companies that had upbeat reports included Berkshire Hathaway (BRK.B), CVS (CVS), Eli Lilly (LLY), Humana (HUM), and Walt Disney (DIS). On the other hand, Skyworks Solution (SWKS) led chip stocks lower on Friday after it issued below-consensus Q1 earnings and revenue guidance. Skyworks, which is an Apple(AAPL) supplier, warned of slowing chip demand, continuing a disappointing trend out of the semiconductor industry.
Also of note, WTI crude lost 4.8% this week, entering bear market territory and extending its decline from last month's four-year high. U.S. President Donald Trump granted temporary wavers on Monday to eight countries who import oil from Iran after the U.S.'s energy sanctions on the OPEC member were officially reimposed.
Macro :
- Italy Considers Only Tweaks to Budget Ahead of EU’s Deadline
- EU’s Juncker Sees Brexit Deal Being Agreed in Coming Weeks
Keep an eye on :
- AGS BB : Ageas Fails to Have FSMA’s Miscommunication Ruling Overturned
- AIR FP : Airbus Order Tally Shows Biggest Neo Customer Upgraded 125 Jets
- AZA IM : Alitalia may have Lufthansa return as bidder
- BA/ LN : BAE Faces Typhoon Order Hit on German Saudi Arms Ban, Times Says
- BKIA SM : Calvino Tells ABC It’s Not the Right Moment to Sell Bankia
- BATS LN : FDA Plans to Pursue Ban on Menthol Cigarettes: WSJ
- BT/ LN : BT Global Services to Cut Customer Base to 800 Companies: FT
- CSGN SW : Credit Suisse escapes criminal action over $2bn Mozambique scandal - FT
- CYAD BB : Celyad: Patients Showed Stabilization in Solid Tumor Program
- DMGT LN : Daily Mail Owner Mulls Bid for Johnston's i Newspaper: Sky
- DUST SS : Dustin to Receive ~SEK695m in Oversubscribed Rights Issue
- FRE GY : Chile Antitrust Court Orders $25.6m Fine For Fresenius Kabi Unit
- GTO NA : EU to Approve With Conditions Thales’s Bid for Gemalto: Reuters
- HMB SS : Nordea Fund Raises H&M Stake, Sees Market View Too Negative: DI
- MAR PL : Martifer Wins EU118m Contract to Build 2 Polar Expedition Ships
- NESN SW : Nestle May Divest Thomy Mayonnaise/Mustard Brand: Samw
- SAN FP : Sanofi Says Praluent Associated W/ Fewer Deaths From Any Cause
- SGL GY : SGL Carbon to Expand Bonn Site as Demand Grows: Euro am Sonntag
- SIM DC : SimCorp Third-Quarter Revenue Misses Lowest Estimate
- TIT IM : Telecom Italia may sell off Inwit to reduce debt
- TIT IM : Telecom Italia Denies Report Board to Seek CEO Genish’s Ouster
- TOM2 NA : TomTom Gets Bids From 3 Private Equity Firms, TMT Finance Says
- FP FP : Total to Develop Satellite Oil Fields in Angolan Block
- FP FP : Total Wins 40 Percent Stake in Abu Dhabi's Adnoc Gas Concession
- VIV FP : Vivendi Will Vote Against Any Drive to Oust Telecom Italia CEO
- VT9 GY : VTG Executives to Sell Shares While Opposing Morgan Stanley Bid
- VOLVB SS : Volvo Cars Gradually Dropping Mobileye for Zenuity, CEO says
- VOW3 GY : VW to Vote on Accelerating Electric Car Plans on Friday: FT