Week of December 3rd Stock Market Watch

All three major stock indices posted large gains this week, led by the Nasdaq which surged by more than 6%. After a brutal October, stock investors are starting to get optimistic again. Federal Reserve Bank Chairman Jerome Powell’s dovish comments lifted stocks higher.

The market has been declining on fears that further rate hikes will slow down the economy, but Powell’s comments helped calm those fears when he said that interest rates are just below level.

Another cloud that has been hanging over stocks has been the ongoing “trade war” between the U.S. and China. That said, over the weekend leaders from both countries met at the G20 meeting, and agreed to a ceasefire. Futures on Sunday are reacting very well to the news.

The VIX is back below 20 now, closing at 18.07 on Friday. It should continue to decline now that fears of a trade war have subsided.

Here are how some of the most actively traded commodity and interest rate ETFs performed: United States Oil Fund (USO) -0.92%, iShares 20+ Year Treasury Bond (TLT) +0.17%, SPDR Gold Shares (GLD) -0.20%

The stock market will be closed on Wednesday, in honor of the passing of former President of the United States, George H.W. Bush.

Economic Releases:
3 Dec 2018- ISM Manufacturing 10:00 AM ET

5 Dec 2018- EIA Petroleum Status Report 10:30 AM ET

6 Dec 2018- International Trade 8:30 AM ET; Jobless Claims 8:30 AM ET

7 Dec 2018- Employment Situation 8:30 AM ET

Key Earnings:
3 Dec 2018- FNSR, COUP

4 Dec 2018- BMO, AZO, CONN, DG, MOV, HOME, HPE, MDB, MRVL, RH, TOL, ZS

5 Dec 2018- AEO, MOMO, CLDR, FIVE, HRB, LULU, SNPS, UNFI, VRNT

6 Dec 2018- KR, MIK, SIG, THO, TTC, AOBC, SAIC, ULTA, GCO, SAIC

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