Wall Street climbed more than 1.5 percent as January drew to an end (S&P500 +1.57 percent), after U.S. job growth surged that month and the Federal Reserve said it will be “patient” on future interest-rate moves. The greenback logically sank after the Fed’s decision. In contrast with the previous week, European and Japanese stocks did not rally in the wake of U.S. markets (-0.07 and -0.10 percent respectively).
Technology stocks rose by 3.95 percent, leading gains among the major S&P sectors, after Apple Inc’s results beat estimates. Interestingly, Chief Executive Tim Cook said trade tensions between the U.S. and China had lessened since late December, giving the tech giant “some optimism.” It helped boost the company’s shares (+5.55 percent WTD) even though iPhone sales dipped in the holiday shopping quarter for the first time. Facebook also posted strong financial numbers for Q4 2018, sending shares up more than 11 percent over the week.
Following the same trend, the S&P energy index rose 3.05 percent, thanks to higher oil prices (WTI crude closing at $55.26, i.e. +2.92 percent) and upbeat earnings from Exxon Mobil and Chevron Corp more specifically.
The S&P communications services sector was also high on the agenda (+3.03 percent WTD). It is worth noting that Charter Communications Inc jumped 17 percent after topping quarterly revenue estimates, as the cable operator attracted more customers for its internet services.
Only one sector was going against the trend: consumer discretionary (-0.11 percent) but others struggled to remain in positive territory, especially financials (+0.11 percent) hit by the Federal Reserve’s abrupt U-turn.
On the interest rate front, the 10-year U.S. Treasury yield slid from 276bps to 268bps, thereby bringing back to the level reached at the end of December.
Find the full report here : https://www.trackinsight.com/weekly-flow-report/2019-02-01/global