Stocks spent much of the week on a continued upswing, largely on lingering hopes for a breakthrough in US-China trade talks. The Yuan moved up after Chinese officials reiterated that the currency would not be used as a pawn in the trade debate. Ultimately President Trump at an Oval Office meeting on Friday reiterated openness to extending the March 1 China tariff deadline should progress continue to be made after the Chinese Vice Premier Liu announced his delegation would be staying in DC for two additional days of trade talks. Oil prices continued upward to levels not seen since November even though US domestic production reached 12M bpd for the first time. The Greenback edged lower, which coincided with a further breakout in gold prices. Apr gold futures crossed $1,340 for the first time since May 2018 before backing off late in the week. Wednesday’s FOMC minutes and a slew of Fed speakers that followed affirmed the 'patient' narrative has been adopted by a consensus and many view the balance sheet unwind coming to an end sometime this year.
For the week the S&P rose 0.6%, the Dow added 0.6% and the NASDAQ gained 0.7%. The focus was on more quarterly earnings in corporate news for this President’s Day-shortened week. Walmart’s holiday quarter came in ahead of expectations on both top and bottom line, as well as on same store sales, despite the poor Dec sales data released by the Commerce Dept last week. Avis Budget lifted on an earnings beat, helping Hertz shares, noting lower fleet costs and improved pricing. Domino’s dropped on disappointing same store sales and margins hit by inflationary pressures. Kraft Heinz fell precipitously after announcing a weak earnings report that included news of an SEC investigation and a dividend cut. Stamps.com market cap was nearly halved after it said it would discontinue its exclusive partnership with USPS.
Macro :
- U.S.-China Said to Haggle Over How to Enforce Currency Pact
- May Pledges Brexit Vote by March 12 in Another Play for Time
Keep an eye on :
- AST IM : Astaldi Sees ~EU365M 2019-2021 From Receivables Securing FRNs
- HMSO LN : Hammerson Set to Announce More Assets Sales This Week: Times
- ISP IM : Intesa May Acquire Stake in Pirelli Investor Camfin, Sole Says
- LBK SM : Abanca Sends Letter to Liberbank Board Outlining Proposal
- NOVN SW : Novartis Therapy Seen as Cost-Effective at Up to $1.5 Million
- PSN LN : Persimmon Faces Review of Help to Buy Participation: Times
- PIRC IM : Intesa May Acquire Stake in Pirelli Investor Camfin, Sole Says
- SFER IM : Salvatore Ferragamo Chairman Says Iconic Brand Is Not for Sale
- SCR FP : Scor sues Barclays over botched takeover deal documents - FT
- SEN GY : Senvion Delays Annual Statement as Board Seeks to Secure Funding
- SDRL US : Seadrill Proposes Amendments to 12% Senior Secured 2025 Notes
- SWEDA SS : Folksam Calls on Swedbank to Inform Market About Transactions
- TIT IM : Vivendi Asks Telecom Italia to Replace Five Elliott Directors
- VIV FP : Vivendi Asks Telecom Italia to Replace Five Elliott Directors