Earnings season is in full swing, with numerous banks reporting a strong uptick in bottom-line growth, driven almost entirely by the new tax changes. Other results were mixed, with negative surprises from Proctor & Gamble and Philip Morris, and positive surprises from the likes of GE and Netflix. Overall stocks gave back most of their gains from early in the week, but were still able to end in positive territory by Friday’s close.
Weekly Returns:
S&P 500: 2,666 (+0.4%)
FTSE All-World ex-US (VEU): (+0.2%)
US 10 Year Treasury Yield: 2.96% (+0.14%)
Gold: $1,336 (+0.2%)
EUR/USD: $1.229 (-0.4%)
Major Event
Our Take
The energy market has been an interesting one to watch. Oil prices have enjoyed a healthy rally this year, driven primarily by a 2016 pact between Saudi Arabia and Russia to cut production. This, coupled with strong global demand and geopolitical tensions, helped whittle away the glut of inventory that drove prices sharply lower in early 2016. The rally even sparked a Friday morning tweet from President Trump, criticizing the deal and claiming oil prices are “artificially very high.” The big question is whether this pact can continue.
