MARKET STATISTICS
Weekly and Year-To-Date Performance
INDEX 12/31/2018 01/11/2019 01/18/2019 % Change Week % Change YTD
 Dow Jones Industrial Average 23,327.46 23,995.95 24,706.35 2.96%  5.91%
 S&P 500 2,506.85 2,596.26  2,670.71 2.87%  6.54%
 Nasdaq Composite 6,635.28 6,971.48  7,138.75 2.40%  7.59%
 Russell Mid-Cap Index 1,857.30 1,955.99  2,011.16  2.82%  8.28%
 Russell Small-Cap Index  1,348.56 1,447.37  1,479.72  2.24%  9.73%

January 18th, 2019

Dear Friends –

The equity markets closed out the week with solid gains on optimism over earnings and trade. For the week the Dow Jones Industrials, S&P 500 and the Nasdaq gained 2.96%, 2.87% and 2.40% respectively.  The Russell Mid-Cap, Small-Cap and MSCI EAFE indexes added 2.82%, 2.24% and 1.72% respectively.

Stocks opened the week with modest losses Monday on fears over earnings growth and concerns about China’s slowing economy.  The tech sector weighed on the major indexes falling 0.9% as shares of Amazon, Apple and Alphabet fell over 1%.  Citigroup kicked off earnings for the major financial institutions on a good note by posting better-than-expected earnings despite falling revenues from its bond trading business.  Shares of the company gained just under 4% on the day.  News out of China early in the session pointed to further slowing as exports and imports fell in December.  The Dow closed down 86 points or 0.36%, at 23,910.  The S&P and the Nasdaq were off 0.53% and 0.94%.  Crude prices were off 2.1% to settle at $50.51 per barrel.  The 10-year Treasury note edged higher to close yielding 2.702%.

The markets made solid gains Tuesday led by strength in the tech sector. Shares of Netflix climbed 6.52% after the company announced it would be raising its subscription prices.  The tech sector gained 1.5% as Amazon, Facebook, Alphabet, Apple and Microsoft gained 3.55%, 3.45%, 3.11%, 2.05% and 2.9%.  In earnings news the big week for the financial sector continued with Wells Fargo beating expectations and JPMorgan missing its number for the first time in over three years.  The major averages backed off from their early highs after British lawmakers voted overwhelmingly against Prime Minister May’s latest Brexit plan.  The major markets across Europe closed higher ahead of the vote.  The Dow closed up 156 points or 0.65%, at 24,066.  The S&P and the Nasdaq added 1.07% and 1.71%.  Crude prices gained 3.2% to settle at $52.11 per barrel.  The benchmark 10-year Treasury note ticked higher to close yielding 2.718%.

Stocks moved higher again Wednesday on earnings optimism. Goldman Sachs led the earnings charge soundly beating their number which propelled shares of the company to its best day in ten years gaining 9.5%.  Bank of America followed closely behind gaining 7.16% after beating their earnings number as well.  The financial sector overall added 2.2%.  Elsewhere United Continental and CSX also beat estimates, while Kinder Morgan fell short on revenues.  The Dow finished with a gain of 142 points or 0.6%, to settle at 24,205.  The S&P and the Nasdaq both added 0.2%.  The benchmark 10-year Treasury note ticked higher closing at 2.729%.  Crude prices edged higher settling at $52.31 per barrel.

The markets rose Thursday to help lift the Dow out of correction territory.  The markets had made solid gains before news broke that Treasury Secretary Mnuchin said the U.S. could ease tariffs on China during negotiations.  The change in posture gave stocks an immediate lift and the major indexes shot to the highs of the session.  The comments were later pushed back against as not an official statement and stocks retreated from the highs.  Shares of trade sensitive companies Boeing and Caterpillar climbed 2% and 2.2% on the day.  The Dow closed up 163 points or 0.67%, to settle at 24,370.  The S&P and the Nasdaq added 0.76% and 0.71%.  Crude oil prices fell 24 cents to close at $52.07.  Treasury yields moved higher following the trade comments and the 10-year Treasury note gained two basis points to close yielding 2.75%.

Stocks shot higher at the open Friday on signs of progress on the trade front with China.  A new report said the Chinese might be willing to offer a six-year increase in U.S. imports that would effectively eliminate the current trade deficit for the U.S. by 2024.  The major indexes all moved higher led by some of the most trade sensitive stocks like Boeing, Caterpillar and Deere.  Shares of the three companies closed with gains of 1.57%, 2.18% and 2.84%.  The Dow closed up 336 points or 1.38%, at 24,706.  The S&P and the Nasdaq added 1.32% and 0.91%.  The gains on the day extended the weekly totals for the Dow and S&P 500, which helped the indexes post their fourth straight week of gains for the first time since August.  Crude prices finished up 3.3% to reach a two-month high.  The 10-year Treasury note gained four basis points to close yielding 2.788%.

-Sonata