The S&P 500 advanced 0.6% this week, closing Friday at a new record high for the first time since January 26. Political uncertainty, trade ambiguity, and strengthened expectations for two more rate hikes this year all failed to dissuade motivated buyers, who pushed stocks higher in three of the week's five sessions.
As for the other major averages, the Nasdaq and the Russell 2000 also notched new records, adding 1.7% and 1.9%, respectively, while the Dow climbed 0.5%.
The week started on a mildly positive note, with stocks ticking higher on Monday and Tuesday, but investors were cautious over the next two sessions, largely due to the legal woes of President Trump's former campaign manager, Paul Manafort, and longtime personal lawyer, Michael Cohen.
Moving on to the trade front, two days of trade talks between the U.S. and China wrapped up on Thursday without any visible sign of progress. President Trump said beforehand that he wasn't expecting much to come out of the talks, which marked the first official negotiations since a breakdown nearly three months ago.
In monetary policy, President Trump reiterated his displeasure with the Fed on Monday, saying he was "not thrilled" with Fed Chair Jerome Powell for raising rates.
Two days later, the Fed released the minutes from the July/August FOMC meeting, which only strengthened the expectation that the U.S. central bank will hike rates at its September meeting, with officials saying in the minutes that it would likely "soon" be appropriate to raise rates.
Then, on Friday, Fed Chairman Powell gave a speech at the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, saying that gradual rate hikes remain appropriate. Mr. Powell also expressed confidence in the economy and said he doesn't see any signs of inflation getting out of hand.
Seven of eleven sectors advanced this week, with cyclical groups showing relative strength. The energy sector (+2.6%) was the top performer -- rebounding from last week's 3.6% tumble -- helped by an increase in crude prices; West Texas Intermediate crude futures climbed 4.2% this week to $68.66 per barrel.
Meanwhile, the consumer discretionary sector (+2.0%) also outperformed amid a steady flow of retail earnings. TJX (TJX) jumped 4.7% on Tuesday after reporting better-than-expected results, while Lowe's (LOW) and Target (TGT) added 5.8% and 3.2%, respectively, on Wednesday after also beating estimates.
On the downside, the four declining sectors were consumer staples (-1.8%), utilities (-1.4%), telecom services (-0.7%), and real estate (-1.1%).
Macro :
- U.S., Mexico Said to Near Pact on Issues Hindering Nafta: WSJ
- Big Oil’s Exit Turns Into Revival for Norway’s Aging North Sea
- Yield Curve Plows Toward Inversion in Face of Questions at Fed
- Firestar ‘Directly Involved’ in Billion-Dollar Fraud: Examiner
Keep an eye on :
- ATC NA : Relvas Seeks Possible Buyers for Altice Portugal Unit: Expresso
- BAYN GY : Bayer, J&J’s Xarelto Fails ‘Mariner’ Trial of High-Risk Patients
- CRG IM : Carige Investors Mincione, Volpi Team Up on Board List: Corriere
- CARLB DC : Carlsberg Brewing Better Profits, Stronger Stock Price- Barrons- http://bit.ly/2wajyIK
- DAI GY : Daimler to Produce Mercedes Trucks in China: Automobilwoche
- DVMT US : Paul Singer’s Hedge Fund Lobbies Against Dell’s $22B Deal: NYP
- DIA SM : LetterOne’s Fridman Seeks Support for DIA Takeover: Expansion
- DIS US : Walt Disney World Reaches Pact With Workers for Min Wage: CNN
- INW IM : F2i Won’t Sell Ei Towers Mobile Antennas to Inwit: CEO to Sole
- IGY GY : RWE Plans to Submit EON/Innogy Deal for Approval in 4Q: BZ
- LHA GY : Pratt Engines Delay Lufthansa; Boeing Cars: Industrials Wrap
- MRO LN : Melrose Is Said to Sell GKN Powder Metallurgy Unit: Telegraph
- B4B GY : Haniel Sells 7.3% of Metro to EP Global Commerce
- NAS NO : Agrees to sell six 737-800 aircraft as part of fleet renewal program - Proceeds of sale to be used to repay debt and increase overall liquidity
- NOVN SW : Novartis’ Entresto Meets Endpoints in Heart-Failure Trial
- NOVOB DC : Novo’s Ozempic Reduced Risk of Major Events in Analysis
- ORA FP : Orange to Stop Fixed Phone Line Service in 2023: Parisien
- PZZA US : Papa John’s Says Investigation of Inclusion Practices Underway
- TEL NO : PPF Doesn’t Plan to Flip Telenor Assets Bought This Yr: Novosti
- TIT IM : TIM Participacoes Confirms COO Labriola to Leave Co. Sept. 30
- TSLA US : Elon Musk Says Tesla Will Remain a Public Company - WSJ - https://on.wsj.com/2Nir3UP