US Capital Markets Review 10/19/18

This week was a mixed one for the US capital markets as the Nasdaq was down -0.6%, but the Dow Jones Industrial Average was +0.4%. For the week, small cap stocks outperformed large cap stocks, and value stocks did better than growth stocks. The week was quite volatile, as stocks yo-yo’ed from day to day, and earnings season started this week for Q3 2018.

When looking at sector performance, the consumer staples sector posted a strong gain of +4.3%, while energy and consumer discretionary lagged at -1.9%. Gold was up +0.8% for the week, closing at $1,227 per ounce. Silver was flat for the week, closing at $14.64 per ounce. Oil was down -2.9% for the week, closing at $69.28 per barrel (West Texas Intermediate).

In looking at economic news for the week, there were some good points and bad points. On the good side, unemployment remains low and job openings are abundant, while on the bad side, the housing market is see declines in existing home sales and a general slowdown. In political news, there wasn’t a whole lot to affect the markets this week, but investors remain weary of what will happen over the next few weeks as Americans go to polls for the midterm elections and how that will affect the political environment, as Republicans look to possibly be losing the majority control.

Cryptocurrencies were fairly quiet. Bitcoin posted a weekly gain of +2.9%, currently at $6,400. Steem was flat for the week, currently at $0.83. EOS had a weekly gain of +2.8%, currently at $5.40.

Overall, the US capital markets are hanging tough, though further volatility is likely in the short term.

Good luck!
Brian