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Weekly Market Update for November 27, 2019

by JM Hanley

The Dow was up on Wednesday, rising 98 points to close at 28,164. So far this week, the Dow is up 1.0% (SP500 +1.4%) and year-to-date is now up 20.7% (SP500 +25.8%). The yield on the 10-year Treasury (an important interest-rate indicator) was unchanged, closing at 1.77%. The price of crude oil was unchanged this week at $58 a barrel – up 28% YTD.

Economic data from the US has mostly been good this week.  Third quarter GDP estimates were revised up, and now show a 2.1% increase. Income growth was notably strong, a positive. Home prices increased more than expected last month. So did capital expenditures (long-term corporate spending).

News was worse in China. Industrial profits in the still manufacturing-reliant country fell 10% last month. Exports, and another indicator of corporate profitability, also dropped last month.   The dismal readouts may prompt Beijing to accelerate ongoing fiscal and monetary stimulus. If trade negotiators can’t reach a compromise, the expansive slate of US tariffs scheduled for December 15 may come into effect, which would make the situation worse.

On a related note, sentiment surrounding a trade deal with China also improved.  Beijing has apparently conceded that it will need to improve protections for intellectual property.  Communication between high-level negotiators would seem to augur well.

Our offices will be closed Thursday in observance of Thanksgiving. We’ll be lightly staffed 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.