20 Feb 2018
February 20, 2018

Market Commentary for 2-19-18

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2018-02-19 Market Commentary from Stuart Cahill on Vimeo.

After two horrific weeks, the major markets saw significant gains for the 5-day session.
While the weekly gains helped to bring the indices back into the green for the year, there is still significant ground to be made up to return to the highs at the end of January.
At the sector level, technology led the pack higher with an impressive weekly gain of 5.83%. Meanwhile, Real Estate and Energy were the lowest gainers for the week.
Energy in particular has struggled more than other areas this month as the S&P 500 Energy index is still down over 9.5% for the month.
While Friday’s Baker Hughes Rig count remained steady at 975 active US rigs, the EIA reported that US Oil production spiked this week to a new all-time high of 10,271 barrels.
The Consumer Price Index dominated economic news as Wednesday’s monthly reading showed a .5% month over month increase. This was well above the consensus estimate of .3%. Many analysts have expressed concerns about inflation in recent months. If inflation grows too much, it could lead to additional action by the Fed to ensure that it does not become too strong.
Meanwhile, the 10-year treasury hit a new four-year high on the same day before closing at 2.91%. Rates fell going into the end of the week to end at 2.88%, representing a slight increase for the week.
This week will be a holiday shortened trading week, but not just for the US as markets in China will also be closed on Monday to celebrate the Lunar New Year. Participants will see If the markets can continue the recent string of gains that began a week ago Friday following February’s early correction.