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Weekly Market Update for November 22, 2017

The Dow was down on Friday, falling 65 points to close at 23,526. For the week so far, the Dow was down 0. 7% (SP500 -0.7%) and year-to-date is now up 19% (SP500 +16%). Trading was muted this week ahead of the Thanksgiving holiday. Markets were cheered by signs of progress on tax reform. Strong performance in healthcare and tech names also pushed the major indexes higher. The yield on the 10-year Treasury fell two basis points, closing at 2.32%.

There was little news from the market this week. Existing home sales last month were better than analysts had expected, but were lower than last October. Analysts attributed the decline to a limited supply of affordable homes for first-time buyers.

The price of crude oil rose this week to $58 a barrel – up 8% YTD. US crude stockpiles showed an in-line draw – of 1.9m barrels – while product inventories of gasoline (+0.1m bls) and diesel (+0.2m bls) rose. Oil prices picked up steam throughout the week driven by the closure of a major pipeline from Canada to the US. The Keystone pipeline is expected to restart but be severely limited through month-end, limiting imports to the US. Also positive for crude this week was a large inventory draw at the major storage hub in Cushing (OK), as well as stronger crude exports and gasoline demand. Next Thursday (30th), OPEC will once again convene to reassess their management of group production. Most investors assume they will extend their production cuts, set to expire in March, through the end of 2018.

Third quarter earnings season has almost concluded. None of our major equity holdings reported this week. Nutanix, one of our core equity positions, did climb 10% Wednesday. The move came after an analyst at investment bank Needham suggested the company’s stock price would continue to climb as investors realize the firm’s potential as a software company for data centers. RBC, another investment bank, also released a favorable comment on the company. Nutanix is scheduled to report earnings on Tuesday of next week.

The markets, and our office, will be closed tomorrow for the Thanksgiving holiday. We will be open for the first half of the day on Friday.

*The information contained in this commentary is not investment advice for any person. It is presented only for informational purposes to assist in explaining factors that may have had an impact in the past or may have an impact in the future on client portfolios or composites. All expressions of opinion reflect the judgment of the firm on this date and are subject to change. Included information has been obtained from sources considered reliable, but we do not guarantee that the foregoing materials are accurate or complete. Clients or prospective clients should contact Ulland Investment Advisors for individualized information prior to deciding to participate in any portfolio or making any investment decision. Ulland Investment Advisors does not provide tax advice. All clients are strongly urged to consult with their tax advisors regarding any potential investment. Past performance does not guarantee future results; there is always a possibility of loss


Ulland Investment Advisors

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