Weekly Market Snapshot

News Last Week

  • Eli Lilly said Monday it would buy Loxo Oncology for $8 billion in cash.
  • Roku surged 25% Monday after releasing preliminary numbers for its active accounts and streaming hours for its fourth quarter. The stock then went on to fall over 6% Tuesday morning after Citron Research called the stock “uninvestable.”
  • Tuesday Samsung warned its fourth quarter operating profit will fall nearly 30% on “lackluster demand “for memory chips and “intensifying competition“ in the handset business.
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  • Tuesday Sears announced plans to shutter after Chairman Eddie Lampert’s $4.4 billion offer to save the company was rejected. By Thursday, Lampert had submitted a revised $5b proposal. The new offer will be assessed by Sears during a January 14 bankruptcy auction.
  • Thursday Federal Reserve (Fed) Chairman Powell said that the central bank is “waiting and watching.” He said the Fed can be patient because inflation is “low and under control.”
  • Thursday Macys shares fell more than 17% after the retailer reported weak holiday sales and cut its profit outlook.
  • Monday: ISM non-manufacturing Index hit 57.6 for December.
  • Tuesday: NFIB Small-business Index for December fell 0.4 point to 104.4. Most of the drop came from labor pressures as business owners said they were increasingly unable to fill open positions.
  • Wednesday: FOMC minutes from the December meeting revealed that Federal Reserve officials felt that the path ahead is “less clear,” and that the Federal Reserve “can afford to be patient.” The minutes also showed that the December rate hike came with reluctance from some members who argued that the lack of inflation did not support another increase.
  • Friday: The Consumer Price Index for December dipped 0.1%, the first drop since March. A steep fall in gasoline prices was seen as the main driver. The year-on-year number was 1.9% dropping from 2.2% the prior month and 2.9% six months ago.
  • Friday: Core CPI for December was 2.2%, unchanged from the prior month.

News Next Week

  • Monday: None scheduled.
  • Tuesday: Producer Price Index for December at 8.30am.
  • Tuesday: Empire State Index for January at 8.30am.
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  • Wednesday: Retails sales for December at 8.30am.
  • Thursday: Housing Starts for December at 8.30am.
  • Thursday: Philly Fed Index for January at 8.30am.
  • Friday: Industrial Production for December at 9.15am.
  • Friday: Consumer Sentiment for January at 10.00am.

Featured Chart

Market-Chart-Performance-of-Active-2018

01/14/2019

Active mutual fund performance by category – 2018

Outside of Small Cap Growth, 2018 was a rough year for active management regardless of asset class.   Related resources Global Investment Forum Global...

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