Friday, 10 November 2017

Information Technology stocks were the top drivers of performance over the past week. The sector was up nearly 2 percent for the period.

Qualcomm, which was up over nearly 18% on news of President Trump’s trade deal with China, helped push the sector higher. REITs also saw a strong return, as GGP, a major mall holder, spiked on rumors of a buyout by Brookfield. Small Cap stocks saw the biggest decline which was primarily driven by weakness in regional banks. Investors seemed to take pause over the ongoing tax-reform negotiations, but certainly the flattening of the yield curve added to concerns.

U.S. Treasury curve flattened

U.S. Treasury curve flattened this week with longer term issues remaining relatively unchanged, with a sizable jump in yields on the short-end. The 90-Day issue closed at 1.23 percent, up from 1.16 percent last week.

Unemployment filings jump

The top economic data release this week was the unexpected increase in filings for unemployment benefits. Although a negative surprise, analysis indicates that the backlog of claims from the recent hurricanes has begun to clear. The seasonally adjusted number came in at 239,000 which is a steady improvement from 289,000 at the start of September. During the President’s trip to China, a focus has been on improved trade relations. Much fanfare has been made of the multi-billion dollar deals with Boeing, GE and Qualcomm, but many market observers remain skeptical due to ongoing structural concerns of doing business in China. Meanwhile, economists wait in anticipation of a concrete tax-reform proposal.

The  Weekly Market Update is prepared by our Global Wealth Investments team to help explain changes in major market indices during the previous week and provide context for economic data.

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Read the full Nov. 9 report with accompanying charts and graphs. 

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