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In the Markets: Week-Ending December 4

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending December 4
Crystal Brook Advisors
We Make Financial Planning Crystal Clear™

United States: The U.S. economy added 211,000 new jobs in November. Readings for October and September were revised higher.The dollar traded modestly higher Friday after a strong November jobs report cleared the way for Federal Reserve policy makers to raise interest rates later this month. (1)

Europe: European shares dropped on Friday, extending losses from the previous session when the ECB’s new stimulus measures disappointed some investors, as falling oil stocks adding

pressure. (2)

Asia: Asian equities slumped to three-week lows Friday, following a global sell-off overnight as investors digested comments from the Fed and the European Central Bank. (3) Acquisition bids for media assets in Taiwan and Hong Kong are raising fears about Beijing’s efforts to control the press in both markets and spin coverage in its favor. (4)

Monday 11/30

• Financials were the best performer on the S&P 500 for the month, posting a 1.7% rise, as investors anticipated that an interest-rate hike could boost banks’ net-interest income. And the utilities sector was the S&P 500’s worst performer of the month, posting a 2.8% decline. (5)

Tuesday 12/01

• Canadian economy expanded at a 2.3 percent annualized rate in the third quarter, which matched consensus expectations. (6)

• November’s overall ISM index at 48.6 is the first dip below the breakeven level of 50 recently and below the six-month average of 51.0. (7)

Wednesday 12/02

• SunEdison, Inc. was a big mover last session, as the company saw its shares rise more than 9% on the day. Shares moved up after its unit TerraForm Global (GLBL) canceled a $3.45 billion deal with a Brazilian renewable energy company.

• S&P 500 and Nasdaq Composite have extended their uptrends, while the Dow Jones Industrial Average is lagging behind slightly, but has just notched its third-best close since July. (8)

Thursday 12/03

• XLE devotes a combined 30.2 percent of its weight to Exxon Mobil Corporation and Chevron Corporation, the two largest U.S. oil producers. Exxon and Chevron are two of just eight members of the Dow Jones Industrial Average that are down at least 5 percent this year. (9)

• Factory orders increased 1.5 percent in October, which was a shade above the consensus and follows a slight upward revision to the prior month. (10)

Friday 12/04

• Nikkei suffers biggest daily drop in more than two months -2.18%. (11)

• Non-farm employment rose 211,000 in November—a solid gain that supports continued economic growth.expected, the unemployment rate held steady at 5.0 percent. The pause reflected an uptick in the labor force participation rate to 62.5 percent. (12)

• The U.S. trade balance in goods and services widened from a revised deficit of $42.5 billion in September to $43.9 billion in October. (13)


Market Close

U.S. stocks rallied on Friday with the S&P 500 and Dow industrials posting their biggest one-day gains in nearly three months. Investors took a strong U.S. jobs report as a further indication that the Federal Reserve will raise interest rates this month. Comments from European Central Bank President Mario Draghi, who said the bank can do more monetary stimulus if needed, also helped lift markets. Big gains in financials and technology sectors more than offset losses in energy shares, which were hit by a plunge in oil prices. The main indexes finished the week marginally higher, extending gains to three straight weeks. The S&P 500 SPX, +2.05% gained 41.97 points, or 2.05%, to 2,091.60 and was flat over the week. The Dow Jones Industrial Average DJIA, +2.12% jumped 369.96 points, or 2.1%, to 17,847.63 and gained 0.3% over the past week. The Nasdaq Composite COMP, +2.08% ended the session up 104.74 points, or 2.1%, to 5,142.27 and posted a 0.3% weekly gain. (14)


(1) Source: MarketWatch.com

(2) Source: Reuters

(3) Source: CNBC

(4) Source: asia.nikkei.com

(5) Source: MarketWatch.com

(6) Source: IHS Global Insight and Wells Fargo Securities, LLC

(7) Source: Institute for Supply Mgmt., U.S. Dept. of Labor, U.S. Dept. of Commerce and Wells Fargo Securities, LLC

(8) Source: Zacks Equity Research

(9) Source: ETF Professor

(10) Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

(11) Source: Reuters

(12) Source: U.S. Department of Labor and Wells Fargo Securities, LLC

(13) Source: U.S. Department of Commerce and Wells Fargo Securities, LLC

(14) Source: Anora Mahmudova -MarketWatch

Contributor: Felipe Vargas-Zúñiga

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