This week, we learned the pick for the new Fed chairman and saw the details of the House GOP tax plan. Markets continued their nonchalant attitude and moved modestly higher on low volatility. If confirmed by the Senate, Federal Reserve Governor Jerome Powell will be the 16th chairperson of the central bank. He is widely expected to maintain Janet Yellen’s approach of gradual rate hikes and a measured approach to reducing the Fed’s balance sheet. In corporate earnings news, Apple exceeded expectations on predicted strong sales of its iPhone X, while Tesla announced supply chain difficulties and reduced expectations for deliveries of its key Model 3.
Weekly Returns:
S&P 500: 2,588 (+0.3%)
FTSE All-World ex-US: (+0.8%)
US 10 Year Treasury Yield: 2.33% (-0.09%)
Gold: $1,270 (-0.2%)
EUR/USD: $1.161 (+0.0)
Major Events:
Monday – Lennar agreed to buy CalAtlantic group, creating the largest U.S. homebuilder
Tuesday – Members of the U.S. International Trade Commission recommended tariffs on solar panels to protect U.S. producers
Tuesday – CME Group said it aims to launch a futures contract on Bitcoin by the end of the year – a move that would make it easier for institutional investors to access the currency
Wednesday – The Fed left interest rates unchanged and said the economy has been growing at a solid rate despite the hurricanes
Wednesday – Facebook reported a 79% jump in earnings, but the stock reaction was muted as the company said it would dramatically increase spending on security
Wednesday – The White House indicated it would nominate Fed Governor Jerome Powell as the next Chairman of the Federal Reserve
Thursday – Apple said earnings rose 19% and indicated strong demand in China and for its iPhoneX. The stock briefly passed $900 billion in market cap
Thursday – Starbucks lowered its long-term growth forecast and said it would sell its Tazo tea brand to focus on Teavana
Friday – Hiring rebounded in October and the unemployment rate fell to 4.1%, a 17-year low
Friday – Broadcom was said to be planning a takeover of Qualcomm, which is currently valued at $90 billion
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