Stocks markets continued to ride a wave of positive momentum throughout much of the first full week of the New Year. US and Chinese officials met in Beijing on Monday and Tuesday and, though details were limited, sentiment improved as future meetings were put on the calendar for later this month. Treasury yields and oil prices also continued to rebound providing a sense of relief for those worried that the recent declines portended an oncoming recession. A deluge of Fed speak, along with the FOMC minutes, affirmed Powell’s recent shift and suggested the Fed consensus is now centered on a ‘wait and see’ approach on rates. The greenback was generally weaker as the US government shutdown dragged on with no endgame in sight as both parties dug further in.
On Friday, investors pulled back from some of those risk assets heading into the weekend and stocks finished lower for the first time in six sessions.
For the week, the S&P rose 2.5%, the DJIA gained 2.4%, and the Nasdaq added 3.5%.
In corporate news this week, Eli Lilly announced it would acquire Loxo Oncology for $8B in order to boost its cancer drug portfolio. Constellation Brands shares tumbled on disappointing guidance related to their wine and spirits division. Retail names saw some volatility this week as Macy's cut its outlook and Kohl’s noted some disappointing holiday SSS, though Target saw a year-end sales surge and Bed Bath & Beyond announced its tracking ahead of long-term financial goals. GM surged on Friday after raising profit guidance as the automaker sharpens its focus on light truck production. Midstream energy firm Targa Resources offered the first high-yield bond deal to hit the markets since November.
Macro :
- OPEC+ Deal Can Sustain Oil at $60 a Barrel: Oman Oil Minister
- Two Big Producers Just Called a Bottom for Oil: $60 a Barrel
- Qatar Plans to Boost U.S. Assets to $45 Billion From $30 Billion
Keep an eye on :
- ALV GY : Bill Gross’s Bond Fund Assets Decline Below $1 Billion
- ALO FP : German Watchdog Has ‘Serious’ Doubts on Alstom-Siemens Deal: FT - https://on.ft.com/2QKEduK
- AMS SM : Amadeus Names Stefan Ropers as Senior Vice-President
- AMZN US : Bezos Divorce Will Cover Amazon’s Billions but Could Be Simple
- ATL IM : Atlantia Ready to Pay EU439m to Rebuild Genoa Bridge: Reuters
- BMPS IM : Paschi to Buy Remaining Shares in Perimetro Gestione
- BMPS IM : Paschi Says ECB Urged Bank to Deliver on Restructuring Plan
- BMW GY : NADA Sees 2019 U.S. New-Auto Sales at 16.8m: Detroit Free Press
- BNP FP : BNP Paribas Is Said to Shut $3 Billion Prop Trading Arm
- BT/A LN : Telecom Italia Is Said to Explore Bid for BT’s Italian Business
- CRG IM : Moody’s Places Banca Carige’s Long-Term Ratings Under Review
- DAI GY : NADA Sees 2019 U.S. New-Auto Sales at 16.8m: Detroit Free Press
- DBK GY : Deutsche Bank, Finance Ministry Held 23 Talks as Woes Worsened
- EDF FP : France to Study Lower-Carbon Fuels for Cordemais Coal Plant
- ELIOR FP : Elior Expects Bids for Areas Unit by End January: Reuters
- ENI IM : Eni Signs Onshore Exploration Concession Accords With Sharjah
- ENI IM : Oman to Award Italy’s Eni an Oil Exploration Block on Monday
- ENI IM : Italy’s Eni Sees Oil Averaging $60 to $62 A Barrel This Year
- LO24 GY : ISS Recommends Zeal Shareholders to Approve Lotto24 Acquisition
- MC FP : Tiffany Investors Brace for More Blues as Holiday Report Looms
- MSFT US : Microsoft Wins $1.76 Billion U.S. Navy Contract
- NFLX US : Netflix’s $45 Billion Rally Sets Up Earnings Showdown Next Week
- 973 HK : L’Occitane to Buy Elemis for $900m From Steiner Leisure, Nemo UK
- RNO FP : Renault to Pay Bonus to 80% of Its French Workers, Union Says
- QFR NO : Q-Free Exploring Strategic Alternatives, Including Combinations
- SLACK IPO : Slack Is Said to Plan for Direct Share Listing Instead of IPO
- SQ US : Square’s Head of Product Mary Kay Bowman Leaves for Visa
- TIT IM : Telecom Italia’s Conti Urges Vivendi to Await Holder Meeting
- TIT IM : Telecom Italia Is Said to Explore Bid for BT’s Italian Business
- FP FP : PNG Wants Exxon, Total, Oil Search to Fund LNG Expansion: AFR
- UNI SM : Unicaja, Liberbank Merger to Have Malaga Headquarters: El Mundo
- DG FP : Vinci Airports 4Q Traffic up 7.2%; Total 195m Passengers in 2018
- VIV FP : Telecom Italia’s Conti Urges Vivendi to Await Holder Meeting
- VOW3 GY : NADA Sees 2019 U.S. New-Auto Sales at 16.8m: Detroit Free Press